| (The Editor's Pick is a new newsletter from The Hindu that provides a snapshot of the most important stories from today's edition of our newspaper, along with a note from our top editors on why we chose to give prominence to these stories.) The Permanent Court of Arbitration at The Hague has ruled in favour of Vodafone in its case against India over a $2 billion tax claim. The tax claim originates in Vodafone's purchase of the Indian asset of Hutchinson Whampoa in 2007. India had claimed $2 billion in capital gains and other taxes on the deal, along with fines and interest, taking the total demand to $3.79 billion. Vodafone had got a favourable ruling from the Indian Supreme Court in 2012. However, the Central government brought in retrospective taxation through legislation the same year, allowing it to pursue the taxes. Vodafone then took the matter to the international tribunal in 2014. Since it was through its Dutch arm that Vodafone purchased Hutchinson's stake in India, the company had invoked terms of the 1995 Netherlands-India bilateral investment treaty. The Hague court has now found India to be in breach of this treaty. This verdict could have a bearing on several other arbitration cases that India is involved in over retrospective taxation, with several billion dollars at stake for the government. The retrospective taxation that was introduced by the UPA government was much criticised internationally, and the NDA government had taken some steps to walk it back. The international court's implication of India in a case where an Act of Parliament is involved, and its possible implication on other international cases, is what makes this story important. | 
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