Cairn dispute: Centre says tax rows can't be settled in global arbitration

India has stuck to its position that non-compliance with tax laws is not covered under international treaties, in its recent response to UK-based energy giant Cairn's arguments in an international arbitration.

Besides, the government has argued, the tax department in its demand on Cairn had enforced the law as applicable on that date. The controversial retrospective amendments to the Income Tax (I-T) Act, it says, were only clarificatory in nature.

Cairn Plc had initiated arbitration in 2015 at The Hague in Netherlands against India under our bilateral investment promotion and protection treaty with the UK government. This was on the Rs 28,000-odd