Cadbury India, a confectionery firm has come under lens of financial intelligence sleuths for alleged excise duty evasion of about Rs 100 crore. The company has wrongfully claimed ‘area based excise duty exemption’ for its new unit at Baddi in Himachal Pradesh, in an inquiry being conducted by the Department of Revenue.
According to central government policy, the area-based exemption for new industrial units of firms in Himachal Pradesh provides full exemption from excise duties for specified goods for a period of 10 years. However, for obtaining this, the unit should have been established before March 2010 to claim such exemption. 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.
