Mondelez International to contest tax demand
Firm claims to have correctly claimed exemption of excise duty
Mumbai: Mondelez International Inc. will challenge the government’s ₹ 550 crore tax demand, the maker of Cadbury chocolates and Oreo cookies said in a statement.
“As a company, we promote a compliant and ethical corporate culture which includes adhering to all laws and regulations of the country we work in. The Company is examining the Commissioner’s Order and will challenge the same in appeal, as we firmly believe that we have correctly claimed exemption of excise duty. We also firmly believe that our executives acted in good faith and within the law in the decision to claim excise benefit in respect of our plant in Baddi," said the company.
According to Mondelez, the issue relates to the applicability of excise exemption in respect of its unit II of the Baddi plant in Himachal Pradesh, which has been in operation since 2009. “The issue is one of interpretation and it will be inappropriate on our part to discuss the details externally at this time since the matter is sub-judice and in the legal domain."
Over the weekend, Reuters had reported that the company was asked to pay ₹ 550 crore in a dispute over a factory in the foothills of the Himalayas.
The firm has been under the scanner since 2011 over the alleged misuse of an exemption provision in Himachal Pradesh that allowed a tax holiday.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!