Vodafone claimed that it is not liable to pay any tax as notified by the Indian Income-Tax Department for the $ 11.1 billion deal with Hutchison executed in February 2007 to acquire the latter’s stake in its Indian JV, Hutch Essar.

"Vodafone remains fully confident that no tax is payable by Hutchison in this transaction and that Vodafone has no liability in any event, and all the taxation and legal advice received continues to be consistent with this view," said Vodafone Group in a statement.

"Vodafone will be reviewing the documents in detail. The Supreme Court granted Vodafone the right of appeal to the Bombay High Court if we disagree with the tax authorities determination," the company said.

The Income-Tax Dept reasons that Vodafone is liable to pay $ 2 billion in tax for the deal with Hutch.