The Supreme Court of India has announced its decision into the long standing case involving global telecom sector giant, Vodafone and the Indian authorities relating to the payment of taxes in the country.

The decision announced by a three-member Supreme Court bench headed by Chief Justice S H Kapadia sets s precedent for similar matters in India.

The company court victory in a case lasting more than four years came as the Surpreme Court dismiss the government’s demand for $2.2 billion in taxes from Vodafone for its acquisition of Hutchison Whampoa Ltd’s India operations in 2007.

The court cleans the confusion on weather global companies can use offshore holding companies to avoid paying taxes in India. Vodafone acquired its partner Essar Group’s stake for $5.46 billion last year to consolidate its control over the company, which is a leading player in one of the biggest telecom market in the world.

Following the ruling by the Supreme Court, the Income Tax department has indicated that it may not file a review petition on the judgment on the Vodafone taxation case.

Vodafone Essar has 146 million customers and enjoys a 17 percent market share, which makes it the third biggest telecom service provider in India.