SEZ approvals and denotifications subject to refund of tax benefits, DC certification and committee oversight on co developer ring fencing.
The Board resolved on SEZ approvals, denotifications, authorized operations, co developer requests and extensions, imposing conditions including DC certification of refund of tax/duty benefits before denotification, Assessing Officer scrutiny of co developer receipts under the Income Tax Act, and deferred several proposals pending DC comments or multi agency committee review. Authorized operations approvals were subject to EGoM development guidelines and DC certification of operational necessity. Co developer cases prompted constitution of a committee (JS(SEZ) with CBDT and CBEC) to devise ring fencing to prevent shifting of capital goods or double dipping. Extensions of formal approvals, LoPs and in principle approvals were routinely granted or rejected based on implementation progress.

Director Identification Number compliance requires mandatory identity and PAN filing, digital professional attestation, and online approval.
Director Identification Number allotment requires applicant name, father's name, date of birth, PAN for Indian nationals and passport for foreign nationals. From 12 June 2011, DIN-1 and DIN-4 must be digitally signed and verified by a practicing Chartered Accountant, Company Secretary or Cost Accountant and will be approved online. Existing DIN holders who did not supply PAN must file DIN-4 to furnish PAN by 30 September 2011, or their DIN will be disabled and they will face penalty liability.

Depreciation rules for electricity companies dictate using regulator notified rates and methodology to compute distributable profits for dividends.
For companies engaged in generation or supply of electricity, depreciation for computing profits available for dividend under Section 205 must follow the rates and methodology notified under the Electricity Act and by CERC where inconsistent with Schedule XIV; adherence to the CERC framework constitutes sufficient compliance with Section 205 for entities covered by Section 616(c).

Adjudication limits for customs officers revised; cases allocated to appropriate officer levels under new thresholds.
Revision establishes tiered adjudication authority for Show Cause Notices under section 28 of the Customs Act: Commissioners have unlimited jurisdiction; Additional/Joint Commissioners and Deputy/Assistant Commissioners have intermediate and lower monetary competence respectively. Separate rules apply for drawback and Export Promotion Schemes-simple erroneous drawback demands remain with Deputy/Assistant Commissioners; collusive or wilful cases are escalated to Additional/Joint Commissioners; export incentive adjudications follow a similar tiered allocation. Completed personal hearings remain with the presiding adjudicator; pending matters and records must be transferred to appropriate authorities under the revised scheme.

Deputation appointment for Deputy Development Commissioner: applications invited with prescribed eligibility, clearances and documentation within the stipulated period.
One post of Deputy Development Commissioner in Cochin SEZ is to be filled on deputation; eligible Central/State officers holding analogous posts or meeting prescribed service criteria and with experience in foreign trade or industrial development may apply. Applications must be submitted in the prescribed proforma within the stipulated time with five years' confidential reports, integrity certificate, vigilance clearance, and penalty details. Appointment is on deputation for the ordinarily prescribed term, with option to draw grade pay plus deputation allowance per the referenced DoPT order, and duties include project scrutiny, licensing work, intergovernmental coordination and general administration.

24x7 port operations enable round-the-clock export formalities, vessel boarding and cargo loading to facilitate continuous trade movement.
Continuous port operations authorize importers, exporters and customs agents to submit bills of entry, shipping bills and other customs documents at any hour, while export activities - boarding and clearance of arriving and departing vessels and loading of export goods in docks and at anchorage - will be undertaken on a 24x7 basis; trade participants are invited to report any operational difficulties to the Commissioner.

Electronic payment requirement for MCA fees updated; limited challan exceptions allowed for specified user categories and fund payments.
With effect from 29-5-2011 challan-mode payment for amounts below the prescribed threshold is permitted in three cases: payments to the Investor Education and Protection Fund via 'Pay Misc. Fee'; payments by users categorized as Official Liquidator offices; and payments by users categorized as MCA employee, as a partial modification of the earlier electronic-only requirement.

Overseas direct investment liberalisation expands permitted guarantees, write-offs, disinvestments and reporting requirements under FEMA.
Performance guarantees will be reckoned at fifty per cent for computing an Indian party's financial commitment and may be valid for the contract period, with similar reporting as financial guarantees and prior central bank approval if invocation breaches exposure limits. Indian promoters with controlling stakes may write off capital and receivables within prescribed routes and limits, report such actions within thirty days with certified loss balance sheets and five-year projections, and disinvestments with repatriation shortfalls are allowed for specified promoter categories under the Automatic Route with reporting. Corporate guarantees for first-generation step-down subsidiaries are permitted under general permission; deeper guarantees require approval where majority stake exists.

Bonus benefit to silk carpets expanded to include ITC HS code 57019090 when shipping bill cites drawback code 570102.
An amendment adds ITC HS code 57019090 with drawback code 570102 to the Focus Product Scheme list of silk carpets eligible for bonus benefits; the bonus will be granted only if the shipping bill mentions drawback code 570102, thereby treating such exports as within the scheme's scope.

Deputation and promotion eligibility for Development Commissioner post: criteria, service conditions, application process and deputation limits.
The Development Commissioner, Cochin SEZ post will be filled by promotion/transfer on deputation from eligible All India and Central Services Group 'A' officers or specified Central Government officers meeting substantive-post or pay-band service criteria and possessing relevant experience in industrial development, foreign trade, estate development and administration. Applications must be advertised for thirty days, forwarded to the Department of Commerce, and submitted with a prescribed proforma and a head-of-department certificate; deputation tenure and maximum age limits apply, and departmental feeders and deputationists are mutually ineligible for the alternative route.

Deputation appointment rules: vacancy to be filled with specified qualifications, documents and fixed-term deputation with allowance option.
Filling one post of Deputy Development Commissioner in Noida SEZ on deputation, carrying specified pre-revised/revised pay scales. Eligibility requires holding analogous posts or defined years of regular service in stated pay scales and experience in foreign trade or industrial development; departmental feeder rules and mutual exclusivity of deputation and promotion are noted. Applications (in duplicate) must be forwarded within the prescribed period with five years' confidential reports, an integrity certificate, vigilance clearance and penalty details. Appointment is by transfer on deputation for the ordinarily prescribed period with an option to draw grade pay plus deputation allowance; core duties include project scrutiny, policy/licensing work, state coordination and general administration.

Director Identification Number: mandatory PAN and digital signature for applications; non-compliance may result in disabling and penalties.
New DIN applications must include name, father's name, date of birth, PAN for Indian nationals or passport for foreign nationals, and from 12 June 2011 must be digitally signed and verified by a practising Chartered Accountant, Company Secretary or Cost Accountant; applications will be approved online. Existing DIN holders who omitted PAN must file DIN 4 to furnish PAN by the prescribed deadline or face disabling of the DIN and penalties.

Limited Liability Partnership not treated as body corporate for auditor disqualification under section 226(3)(a) Companies Act.
The Ministry clarifies that, for the limited purpose of clause (a) of sub-section (3) of section 226 of the Companies Act, 1956, a Limited Liability Partnership of chartered accountants will not be treated as a body corporate, and a notification to that effect has been issued and published in the Gazette.

Body corporate classification: LLPs of chartered accountants not treated as body corporate for auditor disqualification, permitting LLP audit appointments.
Limited Liability Partnerships of chartered accountants are not to be treated as a body corporate for the limited purpose of auditor disqualification under section 226(3)(a) of the Companies Act, 1956; the Ministry of Corporate Affairs has issued a clarification and forwarded a notification for Gazette publication confirming LLPs' eligibility for appointment as company auditors for that specific purpose.

Processing of agricultural produce retains essential character and therefore qualifies for agricultural notification exemptions.
Processing of agricultural produce for or on behalf of a client that does not alter the produce's essential character falls within the expression "in relation to agriculture" in notification 14/2004 ST. Threshing and drying of tobacco (with packing) and processing of raw cashew to recover kernel, when provided as client processing business auxiliary services, are covered by that notification. Similarly, business auxiliary services by commission agents abroad to promote export of rice are covered by notification 13/2003 ST because rice is listed as agricultural produce.

CXL Concessions Sugar quota allocation: designated agency may export to EU subject to certificate of origin and customs endorsement.
Allocation of 10,000 MT of CXL Concessions Sugar for export to the EU for fiscal 2010-11 under Foreign Trade Policy paragraph 2.4, with M/s Indian Sugar Exim Corporation Limited designated as the export agency under HS Code 17010000. Exports require a certificate of origin per Regulation (EEC) No. 2454/93 as referenced in Regulation (EC) No. 891/2009; the GSP certificate is to be issued by the Export Inspection Agency/DGFT and the EUR form endorsed by Customs at shipment.

Export Promotion Council listing changes RCMC issuer for jute exporters, with prior certificates remaining valid until expiry.
The Handbook of Procedures Appendix 2 entry for the jute sector is amended to recognise a designated jute products export council with specified offices and jurisdiction over all jute and jute derived products. RCMCs previously issued by the prior issuing body remain valid until expiry, but going forward RCMCs for exporters of jute and jute products shall be issued by the newly listed export promotion council, effecting a transfer of RCMC issuing authority.

SEZ port codes published; applicants must use designated codes when filing applications under SEZ Act procedures.
Publication of designated SEZ port codes for twenty-four Special Economic Zones and instruction that applicants must use these codes in filings under the Foreign Trade Policy 2009-14 and the SEZ Act and Rules; the circular lists each SEZ with its corresponding LOCODE and advises applicants to apply the listed codes in all relevant application forms and electronic filings.

Assignment of Show Cause Notice: SCN referred to Commissioner for adjudication under Customs Act delegated powers.
Using powers under a customs notification issued under section 4(1) of the Customs Act, the Board assigns the Show Cause Notice issued by the Directorate of Revenue Intelligence in the matter of Rajesh Kumar Gupta and others to the Commissioner of Customs (Preventive), New Custom House, New Delhi for adjudication, and circulates the order to relevant enforcement units and the receiving adjudicating office for action.

Dematerialization requirement for preferential allotment increases disclosure, filing and compliance obligations for unlisted public companies.
The rules establish procedural, disclosure and filing requirements for preferential allotment and private placement by unlisted public companies: preferential issues require a special resolution and approval of a detailed offer document, filings with the Registrar, pre-determined pricing for convertible warrants, timing limits between openings and closings and between issues, prior government approval for sizable cumulative convertible instrument issues, mandatory returns of allotment and a compliance certificate by a practicing professional, and compulsory dematerialization of all securities issued.