Mondelez India settles Rs 580 crore tax dispute under Centre’s amnesty plan, says report

Confectionery giant Mondelez India Foods Pvt Ltd has paid Rs 439 crore to the government under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, according to a news report in The Indian Express. Earlier called as Cadbury India, Mondelez India was accused of evading taxes of about Rs 580 crore in a controversial tax disputes pertaining to its alleged plant in Himachal Pradesh's Baddi, the report said. The Sabka Vishwas tax amnesty scheme was introduced by the Finance Ministry in September 2019 and Mondelez India made an application to settle the dispute in December 2019, the report added. The scheme had a four-month window between September and December for a one-time settlement of past disputes of Central Excise and Service Tax.

Mondelez is also facing another investigation by the Central Bureau of Investigation (CBI) after the Central Vigilance Commission (CVC) referred the tax evasion case to the agency, as it found allegations that certain state and central government officials were allegedly bribed by the company to facilitate the tax evasion, the Indian Express report added.

“We continue to believe that the decision to claim an excise tax benefit in respect of our plant in Baddi was valid. However, the matter dates back to 2010, and it could take several more years to be resolved through the legal process. The Sabka Vishwas Scheme, 2019, introduced by the Indian government in 2019, was an opportunity to settle a potentially protracted litigation. Like other tax payers, Mondelez India chose to take advantage of the amnesty, and we settled several legacy disputes including the Baddi matter,” the Indian Express report quoted an official spokesperson of the company as saying.