Cadbury India Ltd, the confectionary giant was slapped with a notice demanding 250 crore Rupees by the Directorate General of Central Excise Intelligence on the grounds of excise duty evasion.
The Directorate General of Central Excise Intelligence issued the show-cause notice to Cadbury after it investigated that Cadbury misused the area-based exemption for the new unit in Baddi, Himachal Pradesh, much before this unit existed.
Under the norms of the Central government, area-based exemption for the new industrial units of the companies in Himachal Pradesh facilitate full exemption for certain kinds of goods for tenure of 10 years. But in order to avail this exemption, the unit should have been established before March 2010.
On investigation, the Central Excise Intelligence discovered that Cadbury claimed this excise duty exemption for the new unit in Baddi, Himachal Pradesh in context with the period before its existence.