Govt yet to take a call on challenging Vodafone tax arbitration award

While the cost implication in the case is limited to having to pay Rs 85 crore to Vodafone in legal cost, what is weighing on the government mind is a separate arbitration involving UK's Cairn Energy

The government is yet to take a call on appealing against an arbitration award relating to retrospective tax demand against British telecom player Vodafone.

Last month, an international arbitration court ruled that the Indian government seeking Rs 22,100 crore in taxes from telecom giant Vodafone using retrospective legislation was in "breach of the guarantee of fair and equitable treatment" guaranteed under the bilateral investment protection pact between India and the Netherlands.

According to sources, the government has not taken a call on challenging the award yet.

While the cost implication in the case is limited to having to pay Rs