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Updated on: Saturday, June 01, 2019, 02:47 AM IST

Rs 570 cr excise duty evasion demand against Cadbury

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New Delhi : A demand of over Rs 570 crore has been raised against confectionery giant Cadbury India Ltd for allegedly evading excise duty by fraudulently taking exemption for one of its ‘ghost’ production units in Himachal Pradesh.

The Directorate General of Central Excise Intelligence (DGCEI) had in 2011 initiated a probe against the company for allegedly misusing ‘area-based exemption’ for its new unit in Baddi, Himachal Pradesh even before it came into existence, official sources told PTI.

The demand was contested and the central excise office of Chandigarh had late last month issued an assessment-cum-demand notice to Cadbury India Ltd (now Mondelez India Foods Private Limited) upholding the demands raised by the DGCEI.

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It has demanded from the firm Rs 574 crore towards alleged excise duty evasion — including Rs 231.47 crore for the period from July 28, 2010 to January 31, 2013, Rs 111.36 crore for the period from February 1, 2013 to December 31, 2013 and a penalty of Rs 231.47 crore, according to the demand order.

Further, a penalty of Rs one crore has also been imposed against Anand Kripalu, Managing Director of Cadbury India Ltd for allegedly violating central excise rules, the order said.

In addition, penalties to the tune of several lakhs of rupees have been imposed on a few present and

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former employees of the company. Mondelez India in a statement said: “The company is examining the Commissioner’s order and will challenge the same in appeal, as we firmly

believe that we have correctly claimed exemption of excise duty.”

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Published on: Monday, April 06, 2015, 12:21 AM IST
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