‘Duty’ to appeal in USD 1.4 bn Cairn tax award case: FM

Last year, the government lost two high-profile arbitrations over the levy of taxes on British firms, using legislation that gave it the power to levy taxes with retrospective effect.

While the government has already challenged in a Singapore court an international arbitration

tribunal verdict that overturned its demand for Rs 22,100 crore in back taxes from Vodafone Group

Plc, it hasn’t yet done so against a December 21 award asking India to return the value of shares

seized and sold, divided, confiscated and tax refund stopped to adjust a Rs 10,247 crore tax demand on Cairn. 

“We have made our position clear on retrospective taxation. We have repeated it in 2014, 2015, 2016, 2017, 2019, 2020, till now. I don’t see any lack of clarity,” she said, referring to the Modi government’s stand of not raising any new tax demand using the 2012 legislation.

“Where I find arbitration award questioning India’s sovereign authority to tax... if there is a question about the sovereign right to tax, I will appeal, it’s my duty to appeal,” she said. “An arbitration award, which questions the authority of government to tax, I will appeal on that.” She did not make any direct reference to appealing against the Cairn award.