Rs 252 crore excise duty evasion notice to Cadbury

A show cause notice raising a� demand of Rs 252 crore has been served on confectionery major� Cadbury India Limited for alleged excise duty evasion. � � � �The notice, seeking recovery, was issued yesterday by� Directorate General of Central Excise Intelligence after its investigation found that the firm has wrongfully claimed 'area-based exemption' for its new unit at Baddi in Himachal Pradesh, official sources said.
A Cadbury India spokesperson said it will respond to the� show cause notice in consultation with its legal advisers.� � � �"We are in the process of reviewing the contents of the� show-cause notice from the Excise Department and will respond� to it in consultation with our legal advisers. A show cause is�a matter of form in any such enquiry," the spokesperson said in an email response to PTI query. � � �"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 have been fully cooperating with the� authorities on this enquiry. �Since the process is currently� under way, it will be inappropriate on our part to discuss the�details at this time," he added.

� � �As per 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 benefit.
During its investigation, the officials 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.