A bench headed by Justice HL Dattu, however, allowed the petitioner, former Additional Solicitor General Bishwajit Bhattacharyya, to file fresh petition with all the relevant documents stating what action Centre has so far been taken on the issue.

At the beginning of the proceedings, the bench asked the petitioner whether he has talked to the concerned authorities and got relevant documents on the issue.

Bhattacharyya, who deals with tax matters and was a law officer during the UPA regime, submitted that the Centre is not implementing the rule which was amended in 2012 to claim taxes and pleaded to the apex court to intervene in the matter by directing the Centre to administer the Income Tax (I-T) Act ‘impartially, even handedly and without fear or favour’.

"It amounts to arbitrariness of state action not to enforce law (Section 9 of I-T Act) for 27 months after its enactment. This violates Article 14 of the Constitution," the petition said, adding, "Allowing arbitration proceedings under India-Netherland BIPA (Bilateral Investment Protection Agreement) would flagrantly violate rule of law."

He submitted that the IT Act does not recognize conciliation as a dispute settlement mechanism and the tax dispute does not come within the ambit of BIPA.

Recently, the government had appointed former Chief Justice of India RC Lahoti as arbitrator in the tax dispute case.

The government's decision was in response to an arbitration notice served by Vodafone International Holdings BV in April under BIPA for resolving the dispute.

(Agencies)

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