New Delhi, March 12 (IANS): Communications and IT Minister Ravi Shankar Prasad on Thursday said the Vodafone tax issue could have been handled differently.

"Taxing scenario of India should not begin with and end with Vodafone. I know that Vodafone issue could have been handled differently," the minister said during an event.

The Britain-based telecom major is facing a tax liability in India of over Rs.11,200 crore originating from its 2007 acquisition of Hutchison Whampoa's stake in India's telecom company Hutchison Essar.

British major Cairn Energy earlier this week has received a retrospective $1.6 billion demand from the Income Tax department. Invoking the UK-India Investment Treaty, the company said on Wednesday it will contest this under the terms of the pact signed by both countries.

Regarding another tax dispute with the Vodafone, the government decided not to contest the Bombay High Court's Oct 10, 2014 ruling that Vodafone was not liable to pay tax demand of Rs.3,200 crore in a transfer pricing case.