Cadbury under excise scanner

Slapped with Rs 252 crore for evasion of excise duty.

Cadbury India is alleged to have furnished false documents and pretending to make chocolates in a non-existent factory to avoid paying excise duty. The tax authorities are considering of slapping criminal charges against the brand. The Directorate General of Excise and Customs Intelligence has issued a show-cause notice against the company, raising a demand of Rs 252 crore for alleged evasion of excise duty.

Cadbury received permission for making confectionery products in the new plant in Baddi, Himachal Pradesh in January 2011. However, as per the falsified papers, the plant show that manufacturing began in 2010. Factories that began production before March 2010 were eligible for a 10-year tax break. Goods made in another factory were routed through Baddi as production had ot yet begun. 

The company has been given 30 days to repond to the notice.