NEW DELHI: The Vodafone Group has won a long pending arbitration case against the Indian tax department's demand of Rs 20,000 crore on a retrospective basis, the Permanent Court of Arbitration in Hague ruled on Friday.
The international court said that the Indian tax department's conduct of imposing a tax liability along with interest and penalties was in breach of ‘guarantee of fair and equitable treatment’ of the terms laid out in the bilateral investment treaty (BIT) agreement between the Netherlands and India.
Vodafone Group confirmed the development. “The award is confidential but Vodafone can confirm that the tribunal has found in Vodafone’s favour,” the Vodafone Group said in a statement on Friday.
"We are studying the lengthy documents and can make no further comment at this time," it added.
Senior lawyer Anuradha Dutt from DMD Advocates representing Vodafone International Holdings BV in the matter, said that the Court’s decision was a second round of victory for the company after India’s Supreme Court had ruled in its favour in 2012.
“Finally, we have got justice for Vodafone,” she told ET, after the judgment was pronounced.
The telco challenged India had demanded Rs 20,000 crore in capital gains taxes including interest and penalty.
UK’s Vodafone had challenged India's change of law in 2012 which allowed the country to retrospectively tax deals like Vodafone Group's $11 billion acquisition of a 67% stake by Hutchison Whampoa in 2007. The change in law overruled a Supreme Court judgement that went in the company's favour.
The international court said that the Indian tax department's conduct of imposing a tax liability along with interest and penalties was in breach of ‘guarantee of fair and equitable treatment’ of the terms laid out in the bilateral investment treaty (BIT) agreement between the Netherlands and India.
Vodafone Group confirmed the development. “The award is confidential but Vodafone can confirm that the tribunal has found in Vodafone’s favour,” the Vodafone Group said in a statement on Friday.
"We are studying the lengthy documents and can make no further comment at this time," it added.
Senior lawyer Anuradha Dutt from DMD Advocates representing Vodafone International Holdings BV in the matter, said that the Court’s decision was a second round of victory for the company after India’s Supreme Court had ruled in its favour in 2012.
“Finally, we have got justice for Vodafone,” she told ET, after the judgment was pronounced.
The telco challenged India had demanded Rs 20,000 crore in capital gains taxes including interest and penalty.
UK’s Vodafone had challenged India's change of law in 2012 which allowed the country to retrospectively tax deals like Vodafone Group's $11 billion acquisition of a 67% stake by Hutchison Whampoa in 2007. The change in law overruled a Supreme Court judgement that went in the company's favour.
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39 Comments on this Story
 | Guru 32 seconds ago Wait and watch what joomla the BJP government throws next - Ambani cannot survive a strong Vodafone and Jio. He has spent his money giving free data and voice when he launched Jio. |
Srinivasan Vedantam10 minutes ago Any retrospect amendment to be tax law equitable only when the tax payer avoid taxes to take the loophole in tax rules and law. Any act which makes wilfully to circumvent tax laws can be brought under retrospect amendment. The government should come out with white paper what went wrong? Tax expert to ponder on sustainability of tax amendment retrospect for that matter any law. | |
Priti15 minutes ago It was bad in law from the beginning |