Second-hand capital goods restriction: SEZ approvals must permit procurements only under amended income-tax compliance conditions.
The SEZ rule prohibiting use of capital goods previously used in the domestic tariff area was deleted to align with the Finance Act amendment to income tax eligibility; procurement of second hand capital goods for new SEZ units is permitted only in accordance with the substituted income tax provision and the explanatory rules treating certain imported machinery as not previously used and allowing limited transfers of used machinery, and Approval Committees/Development Commissioners must ensure compliance when granting approvals.