The Government of India has until the last week of December to appeal against the decision of the Arbitration Tribunal in the Vodafone case.
Government is looking at all aspects
Finance Secretary Ajay Bhushan Pandey said that the government is considering all aspects before appealing against the decision. He refused to say anything on the promise made by former Finance Minister Arun Jaitley that the government would respect the decisions of arbitration forums in matters related to the earlier date.
Pandey said, “We are looking at various aspects right now and a decision will be taken at the appropriate time.” On the question of time limit to appeal, he said, “90 days time to appeal in each arbitration order. it happens. That is why we have time to take decisions. We will take a decision at the appropriate time.
Vodafone challenged in arbitration tribunal in tax case
Vodafone had challenged the Arbitral Tribunal’s demand for tax on its investment in India through an amendment to the Indian Income Tax Act effective from 2012. This law gave the government the right to levy tax from the earlier fact. Under this, Vodafone’s Hutchison Whampoa was demanded in 2007 for a 67 percent stake in the mobile phone business for a $ 11 billion acquisition deal. The company challenged the demand for capital gains tax of Rs 7,990 crore under the Netherlands-India Bilateral Investment Treaty (BIT).
The arbitral tribunal had said that despite the Supreme Court’s decision, India’s demand for tax from Vodafone is a violation of the guarantee of fair and equal treatment under the Bilateral Investment Protection Treaty.
Under the decision, the government will have to pay 60 percent of the legal expenses to Vodafone and half of the 6 thousand euro spent on appointing the arbitrator. According to sources, the government may have to pay around 75 crore rupees in case of legal expenses.