NewDelhi December 24 :British company Cairn Energy said on Wednesday that it had won a court of arbitration against the Indian government, seeking Rs 10,247 crore as tax with the previous effect. Sources said the three-member tribunal, which also includes a judge appointed by the Government of India, ordered that the Indian government’s tax claim of Rs 10,247 crore is not valid if Cairn internal restructuring of its business in India in 2006-07 .<\/p>\n
The tribunal also asked the Government of India to return Cairn a dividend, a withholding of tax refund, and an interest from the partial sale of shares for recovery of dues.<\/p>\n
Confirming the decision, Cairn said in a statement, “The tribunal has given a ruling in favor of its claim against the Indian government.” Under the tax law, Cairn had demanded a tax on the restructuring of Indian business, which the company challenged.<\/p>\n
“The tribunal unanimously ruled that India violated its obligations to Cairn under the UK-India bilateral investment treaty and would have to pay US $ 1.2 billion in damages and interest costs,” said Cairn. This is the second setback for the past three months. Earlier in September, an international arbitration tribunal ruled against the tax imposed by India on Vodafone Group with prior effect.<\/p>\n