New Delhi, Sept. 15 -- The Delhi High Court on Tuesday quashed tax proceedings against Israeli drugmaker Teva Pharmaceutical Industries Ltd. and its US affiliate arising from a deal with Ranbaxy Laboratories, and ordered the income tax department to refund about Rs.783 crore to Teva Israel.

This brings relief to Teva in a nearly nine-year-old court battle over the payments linked to erstwhile Ranbaxy, now part of Sun Pharmaceutical Industries Ltd.

A bench of Justice Dinesh Mehta and Justice Vinod Kumar found that the tax proceedings against Teva USA were time-barred and without jurisdiction and quashed the notices and proceedings arising from them.

The court also allowed Teva Israel's plea seeking a refund of tax deducted in India on p...