Excise evasion: Cadbury under scanner
Confectionery firm Cadbury India Limited has come under the scanner of financial intelligence sleuths for alleged excise duty evasion of about Rs 100 crore.
In an inquiry being conducted by the Department of Revenue, the firm was allegedly found to have 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 provide full exemption from excise duties for specified goods for a period of 10 years. However, for availing this the unit should have been established before March 2010 to claim such 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
Confusing
arun | 05-Nov-2012Reply | Forward Seems like there is some confusion about whether it has to be established before that date or it has to commence production before that date. This is debatable. It is easy to establish a unit without actually setting it up fully in order to avail this exemption. The laws have to be clear on this.Excise evation investigation
madhav kulkarni | 04-Nov-2012Reply | Forward It has been alleged that Cadbury has wrongly availed excise exemption. If simple issues like commencement certificate or other certifcates are the criteria,this is basic failuer of excise authorities at Simla. They should be question first. What action was taken against them as they were the officers who allowed exemption without proper check up.If somebaody claim anything, it is department's duty to check.
Excise evation investigation
srikant | 05-Nov-2012Reply | Forward This is what Annajee wants.Why the related department should not be held responsible.
