New Delhi, Feb 18 (IANS): Amid speculations of the Indian government and UK-based Cairn Energy going ahead with further legal proceedings regarding the retrospective tax liability, Cairn CEO Simon Thomson on Thursday met Finance Secretary Ajay Bhushan Pandey.

Speaking to reporters post the meeting, the CEO described the meeting as "constructive" and the dialogue is "ongoing".

Chairman of the Central Board of Direct Taxes (CBDT) P.C. Mody and other tax officials also wre present at the meeting.

In December, Cairn Energy won an international arbitration case against the Indian government which claimed Rs 10,247 crore in past taxes over internal reorganisation of Cairn's India business.

The tribunal in the Netherlands awarded damages of $1.2 billion towards Cairn along with interest and costs, payable by the government.

Cairn Energy had, in 2010-11, sold Cairn India to Vedanta. Post the merger of Cairn India and Vedanta in April 2017, the UK firm's shareholding in Cairn India was replaced by a shareholding of about 5 per cent in Vedanta issued together with preference shares.

Along with attaching its shares in Vedanta, the Tax Department seized dividends of around Rs 1,140 crore due to it from the shareholdings and set off a Rs 1,590 crore tax refund against the demand.

In 2015, Cairn initiated an international arbitration to challenge retrospective taxation.

The meeting comes at a time when the government was expected to challenge the arbitration tribunal's award as it has done in the matter involving Vodafone Group Plc.

The Indian government has challenged in the Singapore High Court an international arbitration tribunal's verdict that overturned its demand for Rs 22,100 crore in back taxes from Vodafone Group Plc.

Recently, Minister of State for Finance, Anurag Thakur told the Parliament that the order passed in Cairn Group's case is under consideration of the government.