Govt may be waiting on Cairn case before appealing Vodafone award: Report

The government may be waiting for the outcome of an arbitration initiated against its levy of Rs 10,247 crore retrospective tax on UK’s Cairn Energy Plc before deciding on appealing against losing a tax case against Vodafone Group, sources said.

An international arbitral tribunal is expected to give a decree within next few days on Cairn Energy Plc’s challenge to the Indian government seeking Rs 10,247 crore in retrospective taxes.

If the arbitration award in the Cairn cases goes against India, the government has to pay the British firm over Rs 7,600 crore to reverse the dividend and tax refund it had ceased and shares it sold to recover part of the tax demand.