Cadbury under excise scanner

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 India unit of chocolate maker Cadbury is being investigated over allegations the company may have evaded as much as Rs. 213 crore in taxes, the government informed Parliament on Thursday.

HT Image

"Two cases of tax evasion by Cadbury India Ltd have been detected by the Directorate General of Central Excise Intelligence during the years 2009-10 to 2012-13, up to 31st October, 2012," said S S Palanimanickam, minister of State for Finance S S Palanimanickam, in a written reply to questions from MPs.

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.

(With inputs from Reuters and PTI)