Tax dept probing Rs 200 cr excise duty evasion by Cadbury

The government today said the tax department is investigating alleged excise duty evasion to the tune of Rs 200 crore by confectionery major Cadbury India Ltd.

"The Directorate General of Central Excise Investigation (DGCEI) is investigating a case of wrongfully claiming area based exemption by Cadbury India. The duty, if confirmed, will be recovered after due process of law," Minister of State for Finance S S Palanimanickam said in a written reply in the Rajya Sabha.

He said the investigation on alleged tax evasion of about Rs 200 crore pertained to the 2011-12 financial year.

He said the excise duty evasion by Cadbury India, Baadi (Himachal Pradesh) was under investigation.

Last week in a reply on the alleged duty evasion by Cadbury India, Palanimanickam had said that the company also faced service tax evasion of Rs 13.43 crore and that the case had been adjudicated and a demand of Rs 11.75 crore was confirmed along with a penalty of equal amount.

He had said that the department had realised a sum of Rs 12.08 crore tax with Rs 0.53 crore interest.