TaxTMI 
TaxTMI 
TaxTMI 
Minutes of the 49th meeting of the SEZ Board of Approval held on 28th November 2011 to consider proposals for setting up Special Economic Zones and other miscellaneous proposals
X X X X Extracts X X X X
X X X X Extracts X X X X
....enerated in the SEZs. During the financial year 2010-11, total exports to the tune of Rs. 3,15,867.85 crores have been made from the SEZs, registering a growth of about 43.11% over the exports for the year 2009-10. Exports in the current financial year (i.e. up to 30.09.2011) have been to the tune of Rs. 1,76,479.69 crores. Item No. 49.1: Proposals for setting up of SEZs. (i) Proposal of M/s. Manipal ETA Infotech Limited, for setting up of a sector specific Special Economic Zone for Electronic Hardware and Software including IT/ITES at Agara and Jakkasandra village, Begur Hobli, Bengaluru, Karnataka, over an area of 11.2 hectares. The Board noted that the Developer was in possession of the land. The Government of Karnataka had also recommended the proposal for formal approval vide their letter dated 20.10.2011. Accordingly, the Board decided to grant formal approval to the proposal of M/s. Manipal ETA Infotech Limited, for setting up of a sector specific Special Economic Zone for Electronic Hardware and Software including IT/ITES at Agara and Jakkasandra village, BegurHobli, Bengaluru, Karnataka, over an area of 11.2 hectares. (ii) Proposal of M/s. Mundra Port and Special Econo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o allow sufficient time for proper consideration by the Board. The consideration of the proposal was deferred till the next meeting. (vi) Proposal of M/s. PRP Granites Exports, for setting up of a sector specific Special Economic Zone for Granite at Kalkurichi, Chandran Kulam and Mallankinari Villages, Kariyapati Taluk, Virudhnagar District, Tamil Nadu, over an area of 104.373 hectares. The Board noted that the recommendation of the Government of Tamil Nadu has yet not been received. Therefore, the Board decided to defer consideration of the proposal till the receipt of State Government's recommendations Item No.49.2: Request for co-developer All BoA sanctioned approvals to co-developers are subject to the condition that particular terms and conditions of lease agreement/co-developer agreement will not have any bearing on the treatment of the income by way of lease rentals/down payment/premium etc., for the purposes of assessment under the prevalent Income Tax Act and Rules. The Assessing Officer, will have the right to examine the taxability of these amounts under the SEZ Act and Income Tax Act as applicable. This is applicable to all the cases of co-developers approved by the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....te Limited for co-developer in the sector specific SEZ for Electronic Hardware and Software including IT/ITES at Rachenhalli and Nagavara villages, Hobli, Outer Ring Road, District Bangalore, Karnataka, being developed by M/s. Manyata Promoters Private Limited The proposal was objected to by DoR that co-developer status could not be approved for carrying out merely O&M activities. DC however argued that such activities have been approved in the past by the BoA. The Board deferred the consideration of the proposal with the observation that the DC may put up a detailed report in this regard along with the justification for the project for consideration of the BoA. Item No. 49.3: Delayed request for extension of formal approval (i) Request of M/s. Indian Green Grid Group Limited (Formerly M/s. ETL Infrastructure Services Limited) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Textile at Uthukuli village, Erode District, Tamil Nadu, beyond 30th May 2009. The Board after deliberations condoned the delay and extended the validity of the formal approval up to 30th May, 2012. Item No.49.4: Requests for third extension of vali....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Electronic Hardware and Software/ITES at Bhiwadi, District Alwar, Rajasthan, beyond 20th August 2011 The Board noted that the Government of Rajasthan has not recommended grant of further extension of the validity period of formal approval to the developer. However, it was noted that the matter is sub judice before the Hon'ble High Court of Rajasthan, Jaipur bench which has directed that status quo on the project land be maintained. The Board, therefore, decided to defer the matter till stay on the land in question is vacated. (viii) Request of M/s. CPL Infrastructure Private Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Pharmaceuticals at Ahmedabad, Gujarat beyond 26th June 2011 DC, KASEZ informed that Board the developer has not taken any concrete action to create the required basic infrastructure. DC, KASEZ, therefore, did not recommend grant of further extension to the project. The Board, therefore, after deliberations rejected the request of the developer. (ix) Request of M/s. Balaji Inf....
X X X X Extracts X X X X
X X X X Extracts X X X X
....was not a transparent practice and gave opportunity for a reasoned submission by Government of Orissa before the end of the day. Subsequently, a faxed request was received from Government of Orissa, stating that it would submit its views later. No reasoned submission has been provided. Without condoning this practice, the matter is deferred to the next meeting, before which the State Government may make a reasoned submission. Item No. 49.8: Requests for grant of third extension of in-principle approval. (i) Request of M/s. Reliable Smartcity Limited for extension of the validity period of in-principle approval, granted for setting up of a Multi-Product SEZ at Pachama (Abdullah Pur) District Sehore, Madhya Pradesh, beyond 9th September, 2011 The Board, after deliberations, extended the validity of the in-principle approval up to 9th September, 2012. The Board, observed that the implementation of the project is taking an unduly long time. DC may provide a report on the status of the project and the likelihood of the land requirement being met. (ii) Request of M/s. Vikram Logistic and Maritime Services Private Limited for extension of the validity period of in-principle approval, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....processing areas etc would be strictly adhered to. The State Govt therefore, requested the Board that the additional land parcel may be notified immediately without waiting for construction of new bridges. The representative of the Department of Revenue objected to the proposal stating that prior to notification it was essential that contiguity be established as such a condition had not been waived in the past. In this regard the State Govt representative invited a reference to the decision of BoA in the matter of M/s. IFFCO Kisan Union, a notified SEZ in Andhra Pradesh where a similar situation existed. After deliberation, the Board decided that the all the facts and circumstances of the case would be considered, including decisions taken by the Board in the past, and the matter would be decided on file by DoC. (iii) Request of M/s. Mahindra World City (Jaipur) Limited for increase as well as decrease in area of the sector specific SEZ for Handicraft SEZ at Jaipur (Rajasthan). After deliberation, the Board decided to approve the request of M/s. Mahindra World City (Jaipur) Limited for addition & de-notification of land admeasuring 52.093 hectares and 1.095 hectares respectivel....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is also subject to the contiguity of the SEZ being maintained and the DC's certificate that the developer has refunded all the tax/duty benefits availed under SEZ Act in respect of the area to be de-notified. Item No. 49.11: Requests for de-notification (i) Request of M/s. NSL SEZ (Chennai) Private Limited for de-notification of the sector specific SEZ for IT/ITES at Sholinganallur, Tambaram Taluk, Kanchipuram District, Tamil Nadu, notified over an area of 18.604 hectares After deliberations, the Board decided to approve the request of M/s. NSL SEZ (Chennai) Private Limited for de-notification of the sector specific SEZ for IT/ITES at Sholinganallur, Tambaram Taluk, Kanchipuram District, Tamil Nadu, notified over an area of 18.604 hectares, subject to DC's certificate that the developer has refunded all the tax/duty benefits availed under SEZ Act/Rules. (ii) Request of M/s. B.A. Tech Park Private Limited for de-notification of the sector specific SEZ for IT/ITES at Thumbe village, Bantwal Taluk, Dakshin Kannada District, Karnataka, notified over an area of 12.80067 hectares After deliberations, the Board decided to approve the request of M/s. B.A. Tech Park Private Limited fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eriod of one year from the date of expiry of the validity of the last extension (i.e. up to 11th November, 2012). (iii) Request of M/s. Sigachi Cellulos Private Limited, a unit in M/s. Dahej SEZ Limited, Gujarat for extension of LoP, beyond 31st August 2011 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 31st August, 2012). (iv) Request of M/s. Shankar Packaging Limited, a unit in M/s. Dahej SEZ Limited, Gujarat for extension of LoP, beyond 31st December 2010 DC, KASEZ informed the Board that the unit has not undertaken any development work. Further, the developer had also cancelled the plot allotted to the unit on 11.08.2011. The Board, therefore, after deliberations rejected the request of the unit for grant of further extension of the validity of the LoP. (v) Request of M/s. Torrent Pharmaceuticals (Dahej), a unit in M/s. Dahej SEZ Limited, Gujarat for extension of LoP, beyond 2nd December, 2011 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 2nd December,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ida SEZ for shifting its location to sector specific SEZ for IT/ITES at Gurgaon, Haryana, being developed by M/s. Gurgaon Infospace Limited. The representative of CBDT pointed out that since these units are already operational shifting of such units may not be allowed. The DC and the DGFT representative clarified that such requests had been allowed in the past and supported the contention that in such cases of shifting of units, income tax benefit should be allowed for the balance period in terms of section 10AA of the Income Tax Act, 1961. After deliberations, Board directed to examine on these case on file keeping in view the decisions taken in similar cases in the past. Accordingly, the proposals were deferred. Item No. 49.15: Request of M/s. PAREXEL International (India) Private Limited a unit in the sector specific SEZ for IT/ITES at Hyderabad by M/s. DLF Cyber City SEZ for waiver of the condition imposed while according approval for shifting its location to sector specific SEZ for IT/ITES at Madhapur, Ranga Reddy District, Andhra Pradesh, being developed by M/s. Sundew Properties Private Limited (RahejaMindspace SEZ) The representative of CBDT pointed out that since these....
X X X X Extracts X X X X
X X X X Extracts X X X X
....T/ITES SEZ at RR District, Andhra Pradesh Developer 03.09.2009 60.94 + 120.09 = 181.03 5. IT/ITES SEZ at Jaipur, Rajasthan by Mahindra World City (Jaipur) Ltd Co-developer 14.08.2008 59.5 6. IT SEZ at Kanchipuram, Tamil Nadu by Mahindra World City Developers Ltd Co-developer 09.05.2007 52.21 7. IT/ITES SEZ at Trivandrum, Kerala by Electronics Technology Park Co-developer 22.06.2007 34.4750 8. IT SEZ at Bangalore, Karnataka Developer 01.06.2011 24.446 (iii) Request of M/s Adarsh Prime Projects Pvt. Ltd. for transfer of 100% equity to the entire equity shareholding to M/s. RMZ Infotech Private Limited The Board, after deliberation, granted approval for transfer of entire shares of M/s. Adarsh Prime Projects Private Limited, the developer of the sector specific SEZ for IT/ITES at Bangalore Karnataka, to M/s. RMZ Infotech Private Limited, subject to the following:- (a) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity; (b) Fulfillment of all eligibility criteria applicable to developers, including security clearances etc., by the altered developer entity and its constituents; (c) Applic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt in the meeting. The Board, therefore, after deliberations decided that the appeal would be examined on file by the Department of Commerce. Decisions on the Supplementary Agenda Item No. 49.21: Sale of residential flats by Reatox Builders and Developers Private Limited, a co-developer in the Multi Product SEZ at Nagpur, Maharashtra being developed by M/s. Maharashtra Airport Development Company Limited (MADC). The representative of the developer, Maharashtra Airport Development Company Limited (MADC) pointed out that because of certain contractual obligations prior to the notification of Mihan SEZ, the co-developer, namely, M/s. Reatox Builders and Developers Private Limited were permitted to construction and sell residential flats in the non-processing area of the SEZ to persons not connected with the SEZ. Further, on the directions of the BOA, the term 'sale' was substituted by the term 'lease'. There were however no explicit directions of the BOA to the co-developer that residential flats cannot be leased out to the persons outside the SEZ. DC, Mihan also pointed out that a request had been made on 8th December, 2008 for de-notification of entire non-processing area. Howeve....