CONFECTIONARY firm Cadbury India Limited has come under the scanner of financial intelligence sleuths for alleged excise duty evasion of about Rs 100 crore (£1149920).
An inquiry being conducted by the Department of Revenue has allegedly revealed that the firm wrongfully claimed ‘area-based exemption’ for its new unit at Baddi in Himachal Pradesh, official sources said.
A Cadbury India spokesperson confirmed that a probe was on but declined to discuss details about it.
“A compliant and ethical corporate culture, which includes adhering to laws and regulations in the countries in which we operate, is integral to our success. To that end, we are fully cooperating with the authorities on this inquiry.
“Since the investigation currently is underway, it will be inappropriate on our part to discuss the details at this time,” the spokesperson said.
As per the central government norms, the area-based exemption for new industrial units of firms in Himachal Pradesh covers full release from excise duties for specified goods for a period of 10 years. However, the unit should have been established before March 2010 to claim such an exemption.
Acting on intelligence inputs, the officers of Directorate General of Central Excise Intelligence (DGCEI) found that the company claimed excise duty exemption for its new unit in Sandoli village in Baddi, relating to a period even before it came into existence, the sources said.
According to a certificate of commercial production by the Industries Department of Himachal Pradesh, the unit was established sometime in January 2011, they said.
“By way of wrong availing of the area based exemption for which they are not entitled, the new unit of Cadbury India Ltd in Himachal Pradesh has evaded the central excise duty of approximately Rs 100 crore (£1149920) on the clearances of the goods manufactured by them,” a senior official said.
Armed with intelligence inputs and documents, the DGCEI, also carried out the searches at the various premises of the firm.
During the course of investigation, the statements of various persons, including Managing Director of Cadbury India Ltd have been recorded, a Finance Ministry official said.
