The Indian Supreme Court’s Ruling in Nestle and the Static Interpretation – An Analysis

Abstract

This article takes a look at the recent ruling of the Supreme Court of India in Assessing Officer v. Nestle SA (Nestle) which deliberated the right to invoke the most favoured nation (MFN) clause in a tax treaty and whether such an MFN clause is automatically invoked once notified or if a further notification is required. The article provides an overview of the Nestle case and the fresh arguments put forth by the taxpayer in the petition challenging the decision and critically analyses the two issues deliberated.