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To decline a piece of kaju katli is considered extremely offensive, even if you can't stand the taste or are allergic to cashewnuts. Why you ask? Wait wait I shall tell you properly. The person who offered it to you went out of his/her way to spend a considerable chunk of their monthly salary on it, and expects you to participate in their celebration of good fortune by wolfing down a piece; and you jolly well better show your appreciation (while secretly marveling at their obvious prosperity, considering they were able to afford an entire box). To refuse to eat or taste it is like saying you wish to have no part in someone's good fortune. Very rude thing to say in any culture, if you think about it.
If you dislike the taste and don't want to incur anyone's wrath, here's a tip : Take a piece, pretend to nibble on it and chuck it into the closest flowerpot when no one is looking.