New Delhi: British oil explorer Cairn Energy today said final hearing in the international arbitration it has initiated against a Rs 10,247 crore retrospective tax demand raised by India, has been pushed back by about six months to August 2018.
Cairn initiated arbitration against the government using a new law that gave it powers to impose taxes retrospectively, to slap a tax demand of Rs 10,247 crore on a decade old internal reorganisation of its India unit.
"The arbitration proceedings are well advanced, and the (arbitration) Tribunal and parties have now agreed the process and timetable for finalising document production, submissions, and hearings.
"This includes some extensions to the previously agreed schedule, and taking into account the Tribunal and parties availability, the final hearing has now been scheduled for August 2018," it said in a regulatory filing.
The company, however, did not give reasons for the delay.
It had earlier expected responses and counter-responses to be filed with the three-member tribunal by December and final hearing begin sometime early 2018.
"The Tribunal stated that it expects the parties to strictly adhere to the deadlines set out in the amended procedural calendar and it will make appropriate arrangements to progress with the drafting of the award as expeditiously as possible," Cairn said in the filing.
Cairn said its direct subsidiary, Cairn UK Holdings Ltd had in 2016 received an assessment order from the Indian Income Tax Department (IITD) relating to the intra-group restructuring undertaken in 2006 prior to the IPO of Cairn India Ltd (CIL) in India.
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Updated Date: Sep 20, 2017 16:14:59 IST