HC admits Vodafones writ petition

Mumbai, January 28, 2008: In a significant step forward for Vodafone International Holdings BV (VIHBV) today, the Mumbai High Court admitted its writ petition challenging the action of the Indian Tax Authorities that Vodafone was in default of withholding tax obligations in India. The matter was heard by the bench consisting of Justice Robello and Justice Mohite.

The Court admitted the writ and has kept March 10, 2008, for final hearing to determine maintainability and merits of the matter.

The Court favoured the argument presented by VIHBV challenging the jurisdiction of the Indian Tax Authorities to issue a notice to it for recovery of withholding Tax. VIHBV argued that it did not have withholding tax obligations in India and that the transaction was not taxable in India. Given that the facts of the case were not in dispute, and contrary to the Indian Tax Authorities claim, the Court did not find it necessary to request VIHBV to file any further documentation at this point. Further, the Court also continued the stay granted to Vodafone.