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2018 (7) TMI 1999 - GAUHATI HIGH COURTArea Based Exemption - N/N. 32/99-C.E. and 33/99-C.E., both dated 8-7-1999 - Exemption of Manufacture of Pan Masala - pre and post escrow situation - capital investments - The IAC had rejected the investment claimed by the petitioner in respect of social project by giving an interpretation that the investment in social project would have to be capital investment for the benefit of the society - HELD THAT:- Capital investment would have to be understood to be an investment to meet the acquisition price of a capital asset, where the word capital means accumulated goods, possessions and assets used for the production of profits and wealth. When the aforesaid meaning of the expression capital investment is taken into consideration, the reasoning of the IAC that the social project has to be interpreted to mean a capital investment appears to be self-contradictory. On one hand we have the concept of social project, which would mean some activity which would lead to the benefit of the society and on the other hand in order to be qualified to be a social project, it must also be a capital investment which ultimately would lead to the concept of production of profit and wealth. It would be difficult to find a purpose where if invested, the same would also lead to the benefit of the society as well as create profit and wealth. In the absence of the procedure being followed by the IAC as indicated above, the minutes of the meeting held on 25-6-2014 of the IAC, rejecting the investments claimed by the petitioner, is hereby set aside. Consequent upon the minutes of 25-6-2014 being set aside, the demand notice dated 15-9-2014 is also accordingly set aside - Petition allowed.
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