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2011 (3) TMI 1541 - HC - VAT and Sales TaxBenefit of the exemption under the diversification scheme - Held that:- In case of the first diversification on the additional investment exceeding 25 per cent of the original (initial) investment would make the unit eligible to claim exemption under the diversification, then why not unit cannot claim the exemption for further diversification making further investment exceeding 25 per cent of the original (initial) capital investment. In case if the interpretation of the Revenue is accepted, it would mean that the additional investment should be exceeding 25 per cent of the total investment, including the original investment plus the further investment as on the date of the claim of, the diversification. Thus this cannot be the intention of the Legislature. Thus the unit is entitled for the benefit of the exemption under the diversification scheme, in case if it invests further 25 per cent of the original investment, that is, the initial investment in the unit and not 25 per cent of the total investment including the original investment and the further investment, as on the date of the claim of exemption. Revision allowed.
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