This is the second time in as many years Cadbury has run into trouble with Indian authorities. Last year, an investigation was launched to determine whether Kraft Foods Inc needed to pay taxes arising from its $19 billion takeover of Cadbury. That probe is ongoing.
The latest of the two cases against Cadbury's India unit, which is controlled by Mondelez International Inc (MDLZ.O), involves alleged evasion of central excise duty, or factory gate tax at a company facility in Himachal Pradesh.
A Cadbury India spokesperson said: "we are fully cooperating with the authorities on this enquiry. Since the investigation currently is under way, it will be inappropriate on our part to discuss the details at this time".
(With inputs from Reuters and PTI)