Government said that taxation is not covered under the UK-India Investment Promotion
Cairn Energy UK's plea for an arbitration over Rs10,247-crore tax dispute was rejected by government
New Delhi: The government has rejected Cairn Energy UK’s plea for an arbitration over Rs10,247-crore tax dispute saying taxation is not covered under the UK-India Investment Promotion and Protection Treaty.
The firm has however challenged saying it had invoked the bilateral investment protection treaty clause as it has not been allowed to carry out its natural course of business. Using the treaty, Cairn had last month named former Bulgarian minister and lawyer Stanimir A. Alexandrov as its arbitrator and asked the government appoint its own judge on a three-member arbitration panel to go into the Rs10,247 crore tax demand raised against it using retrospective taxation.
( Source : PTI )
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