comscore Not acceding to Indian jurisdiction in tax case: Vodafone to HC
News

Not acceding to Indian jurisdiction in tax case: Vodafone to HC

There is a demand of Rs 11,000 crore in taxes from Vodafone.

  • Published: October 16, 2017 12:16 PM IST
Vodafone partner-walmart

Vodafone Group today told the Delhi High Court that it is not submitting to the jurisdiction of the courts here regarding the arbitration process initiated by it against India in connection with a tax demand of Rs 11,000 crore. The company has initiated arbitration proceedings under the India-United Kingdom Bilateral Investment Protection Agreement (BIPA) in connection with the tax demand raised against the company in relation to its USD 11 billion deal acquiring the stake of Hutchinson Telecom. Also Read - Best Vodafone-idea (Vi) prepaid plans under Rs 100: List of plans, unlimited data, voice calls, more

The high court on August 22 had restrained the Vodafone Group’s arbitration proceedings under the India-UK BIPA which was the company’s second arbitration on the same issue. Earlier the company had initiated a similar arbitration under the India-Netherlands BIPA on the same issue and that proceeding is still going on. Senior advocate Harish Salve, appearing for the telecom major, today informed Justice Manmohan that the company in its response to the high court’s August 22 notice has said it is not acceding to jurisdiction of Indian courts in the matter. Also Read - Airtel 5G Mumbai trials show download speeds of 1.2Gbps, upload at 850Mbps

Salve also told the court that the Indian government had committed to appoint an arbitrator before the President of the International Court of Justice (ICJ), where the first arbitration is pending, but the fact was not disclosed here. The central government, which has opposed the arbitration proceedings under the two BIPAs by moving a plea here, claimed that the company’s response was not as per the Civil Procedure Code (CPC). The court, however, said it would take up the matter on October 26, the date already fixed for the hearing, and asked both sides to file their written submissions by October 17. Also Read - Vi prepaid recharge plans July 2021: List of all Vi recharge plans under Rs 500 with benefits, validity

The court also appointed an amicus curiae to assist it in the matter. The court on August 22 had halted the second arbitration under India-UK BIPA, saying that since the reliefs sought in both proceedings were virtually identical, “there is a risk of parallel proceedings and inconsistent decisions by two separate arbitral tribunals in the present case”. In its interim order, the court had also said it was of the prima facie view that “India constitutes the natural forum for the litigation of the defendants’ (Vodafone and its subsidiaries) claim against the plaintiff (Centre)”.

The court had noted that the government was of the view that the USD 11 billion acquisition of stake of Hutchinson Telecommunications International Limited (HTIL) in Hutchinson Essar Limited (HEL) by Vodafone was liable for tax deduction at source (TDS) under the Income Tax Act. As Vodafone had not deducted the tax at source, the government had raised the demand of Rs 11,000 crore which was subsequently quashed by the Supreme Court on January 20, 2012, the high court had said.

Thereafter, the government made a retrospective amendment to the Income Tax Act which re-fastened the liability on Vodafone, the high court order had noted. Aggrieved by imposition of tax, Vodafone International Holdings BV (VIHBV), a Vodafone Group subsidiary, had invoked arbitration clause under BIPA between India and Netherlands through a notice of dispute of April 17, 2012 and notice of arbitration of April 17, 2014, the 10 page order had said.

While the proceedings under the India-Netherlands BIPA was pending, Vodafone had initiated arbitration under the India-UK BIPA on January 24 this year. Challenging the second arbitration, the government had said the two claims were based on the same cause of action and seek identical reliefs but from two different tribunals constituted under two different investment treaties against the same host state.

The government had on August 22 argued before the high court that the arbitration proceedings initiated under the India-UK BIPA was an abuse of the process of law. It had further contended that disputes encompassing tax demands raised by a host state are beyond the scope of arbitration provided under the bilateral investment treaty as taxation is a sovereign function and it can only be agitated before a constitutional court of the host state. It had also contended that laws passed by Parliament cannot be adjudicated by an arbitral tribunal and do not fall within the ambit of BIPA or any other international treaty.

Save

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel. Also follow us on  Facebook Messenger for latest updates.
  • Published Date: October 16, 2017 12:16 PM IST



new arrivals in india

Tecno Pova 2
Tecno Pova 2

10,999

Infinix Smart 5A
Infinix Smart 5A

6,499

Micromax In 2b
Micromax In 2b

8,999

Vivo Y72 5G
Vivo Y72 5G

20,990

Tecno Camon 17
Tecno Camon 17

12,999

Tecno Camon 17 Pro
Tecno Camon 17 Pro

16,999

Realme C11 2021
Realme C11 2021

6,999

Oppo Reno6 Pro 5G
Oppo Reno6 Pro 5G

39,990

Oppo Reno6 5G
Oppo Reno6 5G

29,990

Samsung Galaxy M21 2021
Samsung Galaxy M21 2021

12,499

OnePlus Nord 2
OnePlus Nord 2

27,999

Poco F3 GT
Poco F3 GT

27,999

Samsung Galaxy A22 5G
Samsung Galaxy A22 5G

19,999

Xiaomi Redmi Note 10T 5G
Xiaomi Redmi Note 10T 5G

13,999

Samsung Galaxy F22
Samsung Galaxy F22

12,499

Xiaomi Mi 11 Lite
Xiaomi Mi 11 Lite

21,999

Infinix Note 10 Pro
Infinix Note 10 Pro

16,999

Infinix Note 10
Infinix Note 10

10,999

Vivo Y73
Vivo Y73

20,990

OnePlus Nord CE 5G
OnePlus Nord CE 5G

22,999

iQOO Z3
iQOO Z3

19,990

Realme C25s
Realme C25s

9,999

Poco M3 Pro 5G
Poco M3 Pro 5G

13,999

Realme X7 Max 5G
Realme X7 Max 5G

26,999

Oppo F19
Oppo F19

18,990

Motorola Moto G40 Fusion
Motorola Moto G40 Fusion

13,999

POCO M2 Reloaded
POCO M2 Reloaded

9,499

OPPO A74 5G
OPPO A74 5G

17,990

Oppo A53s 5G
Oppo A53s 5G

14,990

Vivo V21 5G
Vivo V21 5G

29,990

Realme C25
Realme C25

9,499

Realme C21
Realme C21

7,999

Realme C20
Realme C20

6,799

Motorola Moto G60
Motorola Moto G60

17,999

iQOO 7
iQOO 7

31,990

Samsung Galaxy M42 5G
Samsung Galaxy M42 5G

21,999

Xiaomi Mi 11 Ultra
Xiaomi Mi 11 Ultra

69,999

Xiaomi Mi 11X Pro 5G
Xiaomi Mi 11X Pro 5G

39,999

Xiaomi Mi 11X
Xiaomi Mi 11X

29,999

Realme 8 5G
Realme 8 5G

13,999

Samsung Galaxy F02s
Samsung Galaxy F02s

8,999

Samsung Galaxy F12
Samsung Galaxy F12

10,999

POCO X3 Pro
POCO X3 Pro

18,999

Realme 8 Pro
Realme 8 Pro

17,999

Realme 8
Realme 8

14,999

Vivo X60 Pro Plus
Vivo X60 Pro Plus

69,990

Vivo X60 Pro
Vivo X60 Pro

49,990

Vivo X60
Vivo X60

37,990

OnePlus 9 Pro 5G
OnePlus 9 Pro 5G

64,999

OnePlus 9R 5G
OnePlus 9R 5G

39,999

OnePlus 9 5G
OnePlus 9 5G

49,999

Samsung Galaxy A72
Samsung Galaxy A72

34,999

Samsung Galaxy A52
Samsung Galaxy A52

26,499

Micromax In 1
Micromax In 1

10,499

Asus ROG Phone 5
Asus ROG Phone 5

49,999

Samsung Galaxy M12
Samsung Galaxy M12

10,999

Motorola Moto G30
Motorola Moto G30

10,999

Motorola Moto G10 Power
Motorola Moto G10 Power

9,999

Oppo F19 Pro Plus 5G
Oppo F19 Pro Plus 5G

25,990

Oppo F19 Pro
Oppo F19 Pro

21,490

Xiaomi Redmi Note 10 Pro Max
Xiaomi Redmi Note 10 Pro Max

18,999

Xiaomi Redmi Note 10 Pro
Xiaomi Redmi Note 10 Pro

15,999

Xiaomi Redmi Note 10
Xiaomi Redmi Note 10

11,999

Realme Narzo 30A
Realme Narzo 30A

8,999

Realme Narzo 30 Pro
Realme Narzo 30 Pro

16,999

Infinix Smart 5
Infinix Smart 5

7,199

Samsung Galaxy F62
Samsung Galaxy F62

23,999

Samsung Galaxy A12
Samsung Galaxy A12

12,999

Nokia 5.4
Nokia 5.4

13,999

Nokia 3.4
Nokia 3.4

11,999

Realme X7 Pro 5G
Realme X7 Pro 5G

29,999

Realme X7
Realme X7

19,999

Vivo Y31
Vivo Y31

16,490

Oppo Reno5 Pro 5G
Oppo Reno5 Pro 5G

35,990

Samsung Galaxy S21 Ultra 5G
Samsung Galaxy S21 Ultra 5G

1,05,999

Samsung Galaxy S21 Plus 5G
Samsung Galaxy S21 Plus 5G

81,999

Samsung Galaxy S21 5G
Samsung Galaxy S21 5G

69,999

Vivo Y12s
Vivo Y12s

9,990

Vivo Y51A
Vivo Y51A

17,990

Samsung Galaxy M02s
Samsung Galaxy M02s

8,999

Xiaomi Mi 10i
Xiaomi Mi 10i

21,999

Oppo A15s
Oppo A15s

11,490

Tecno Spark 6 Go
Tecno Spark 6 Go

8,499

Vivo V20 2021
Vivo V20 2021

24,990

Vivo Y20A
Vivo Y20A

11,490

Xiaomi Redmi 9 Power
Xiaomi Redmi 9 Power

11,999

Motorola Moto G9 Power
Motorola Moto G9 Power

11,999

Motorola Moto G 5G
Motorola Moto G 5G

20,999

Vivo V20 Pro
Vivo V20 Pro

29,990

Xiaomi Mi 10T
Xiaomi Mi 10T

35,999

Xiaomi Redmi 9i
Xiaomi Redmi 9i

8,299

Xiaomi Mi 10T Pro
Xiaomi Mi 10T Pro

39,999

Infinix Hot 10
Infinix Hot 10

9,999

Vivo V20 SE
Vivo V20 SE

20,990

Vivo V20
Vivo V20

24,990

Micromax In 1b
Micromax In 1b

6,999

Best Sellers