Vodafone Idea, India’s third-largest telecom service provider, is seeking about Rs 7,000 crore in tax refunds for past years even as it faces fresh statutory dues liability running into thousands of crore that has put the Income Tax Department in a bind, sources privy to the development said.

It had famously adjusted Rs 1,500 crore in tax refunds due to Cairn Energy plc of UK to part settle a retrospective tax demand of Rs 10,247 crore even though the matter was under arbitration.

Sources said Vodafone has to receive an aggregate of about Rs 1,000 crore from Mumbai unit of Income Tax Department and another Rs 6,000 crore from its Delhi office for multiple assessment years dating back to 2004-05.

The company has got favourable rulings from high courts and appellate tribunals in some and is now pressing the department to quickly refund the dues, they said.

The Income Tax Department is, however, caught in a bind as Vodafone-Idea Ltd has to pay Rs 44,150 crore to the government in past statutory dues following the Supreme Court ruling that non-telecom revenues have to be included for calculating the payout towards license fee and spectrum usage charge.

Sources said the department is of the view that the refund should be adjusted against this demand as there have been some concerns raised in a section of media about the very existence of the company if it were asked to cough up the past statutory liabilities.

Vodafone Idea, last week, reported a consolidated loss of Rs 50,921 crore the highest ever loss posted by any Indian corporate for September quarter on account of liability arising out of the Supreme Court’s order in the adjusted gross revenue case.