Cadbury India faces probe

Central Excise Intelligence says the company has to pay up Rs. 570 crore

A confectionary company with a unit in Himachal Pradesh has allegedly evaded excise duty of Rs. 570 crore.

By Union government norms, area-based exemption is given for new industrial units in the State for specified goods for 10 years only if the unit had been established before March 2010. Central Excise Intelligence, which has initiated an investigation, says that Cadbury India Ltd. claimed the exemption for its unit at Sandoli village in Baddi relating to a period even before it came into existence.

A certificate issued by the State Industries Department says the unit was established after March 31, 2010.

CPI (M) demands action Calling it cheating and mischief on the part of company, the Communist Party of India (Marxist) State unit demanded stern action against the confectionery giant. The party demanded an investigation into the patronage given illegally to the company by the political and bureaucratic circles here.

“Mondolez India Foods Private Ltd., a subsidiary of Cadbury, should be taken to task,” Tikender Panwar, CPI(M) leader, said. He said the firm had evaded Rs. 231.47 crore in excise duty from July 28, 2010 to January 31, 2013, and Rs. 111.36 crore from February 1, 2013 to December 31, 2013. Add to it a penalty of Rs 231.47 crore, as said in a demand order of the Director-General of Central Excise Intelligence.

The CPI(M) charged that the company with not getting mandatory licenses or permissions from the local bodies for setting up the unit.