To debate the difficulty of retrospective tax demand after successful the arbitration award towards the federal government, Cairn Power’s chief government officer Simon Thomson met Finance Secretary Ajay Bhushan Pandey on Thursday. Terming it as a constructive dialogue, Thomson mentioned it’s an ongoing dialogue with the federal government.
“We had a constructive dialogue and the dialogue is ongoing,” Thomson informed reporters after the assembly. When requested about particulars, he mentioned he “can’t remark extra on the assembly.”
Cairn’s CEO had initially sought a gathering with Finance Minister Nirmala Sitharaman nevertheless it wasn’t formalised. Thursday’s assembly was attended by Finance Secretary, CBDT Chairman PC Mody and different senior officers from the tax division. The Finance Minister is learnt to have informed the officers earlier than the assembly to listen to out Cairn’s proposals on the matter. The federal government has been considering a number of measures together with submitting an enchantment earlier than the 90-day enchantment window ending in March because it believes the sovereign proper for taxation must be emphasised. The federal government, nonetheless, has not dominated out an out-of-court settlement by the dispute decision scheme of Vivad se Vishwas, if the corporate comes onboard for it, a supply mentioned.
All eyes on govt transfer
Cairn CEO reached out to the federal government for a constructive decision of the retrospective tax demand case. The important thing improvement that might be tracked now’s whether or not the federal government will enchantment additional or go for an out-of-court settlement.
Earlier than the assembly, Thompson mentioned the corporate desires a constructive decision. “We’re happy that it has come to an finish (and) the award has been granted. Our shareholders need this to be resolved as shortly as doable and that’s the reason we’re right here to have a dialogue immediately,” he mentioned.
He refused to touch upon the federal government difficult the award, saying the corporate is wanting ahead to “a constructive decision.” In December, Cairn Power had received a significant reduction because the Everlasting Court docket of Arbitration at The Hague had dominated that the Indian authorities’s retrospective tax demand towards the worldwide oil and fuel main was “inconsistent” with the UK-India bilateral treaty. The worldwide tribunal had dominated that India’s retrospective tax demand was “in breach of the assure of honest and equitable remedy”.
In a petition, Cairn Power plc and its UK holding firm have approached the US district court docket for the District of Columbia to recognise and ensure the December award of the Everlasting Court docket of Arbitration at The Hague.
The judgment has requested the federal government to pay $1.2 billion (roughly Rs 8,800 crore) to Cairn Power Plc.