EVEN as a battle royale continues between the Income Tax Department and the Vodafone International BV over the Rs 11000 Cr tax bill, a parallel battle has started gathering momentum over 1% court fee to be collected by the Supreme Court Registry over Rs 2500 Cr cash deposit as ordered by the CJI Bench earlier in the case. Even after two hearings the issue has not been resolved. The Revenue has taken a stand that it cannot pay this sum unless Vodafone agrees to a condition that if the sum has to be refunded with interest after the case is decided, it will be on Rs 2475 Crore plus interest.

The counsel for the assessee has also volunteered to pay this sum of Rs 25 Cr as cash handling charge to the Registry. Wihile the standstill continues, the Apex Court has asked the AG G E Vahanvati to get back to the court what solution the Government would like to suggest in this case.