TaxTMI 
TaxTMI 
Minutes of the 46th meeting of the SEZ Board of Approval held on 31st May 2011 to consider proposals for setting up of Special Economic Zones
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....al year 2010-11, total exports to the tune of Rs. 3,15,867.85 crore have been made from SEZs, registering a growth of about 43.11% over the exports for the year 2009-10. Item No. 46.1: Proposals for setting up of SEZs. (i) Proposal of M/s. SmartCity (Kochi) Infrastructure Private Limited, for setting up of a sector specific Special Economic Zone for IT/ITES at Puthencruz village, Kunnathunadu Taluk, Ernakulam District and Kakkanad village, Kanayannur Taluk, Ernakulam District, Kerala, over an area of 46.3773 hectares. DC Cochin informed the Board that the Developer has asked for deferment of the proposal. Accordingly, the proposal was deferred. (ii) Proposal of Karnataka Industrial Areas Development Board (KIADB), for setting up of a sector specific Special Economic Zone for IT/ITES at Gamanagatti, Hubli Taluk, Dharwad District, Karnataka, over an area of 12.15 hectares. The Board noted that the Developer was in possession of the land. The Government of Karnataka has also recommended the proposal for formal approval vide their letter dated 18th March, 2011. Accordingly, the Board decided to grant formal approval to the proposal of Karnataka Industrial Areas Development Board (K....
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.... in such an arrangement the possibility of the capital goods procured by the unit being loaded onto the co-developer to absolve the unit of NFE positive obligation cannot be ruled out. The Board recognized that there was a need to arrive at an arrangement which could ensure that the affairs of the unit and co-developer are adequately ring fenced so as to avoid double dipping which could lead to a potential loss of revenue. The Board directed constitution of a committee under the chairmanship of JS (SEZ), DoC with representatives of CBDT and CBEC as members, to work out such an arrangement. Accordingly, the proposal was deferred. (ii) Request of M/s. Indian Oil Corporation Ltd. for co-developer in the port based SEZ at Puthuvypeen, Kerala developed by Cochin Port Trust. After deliberations, the Board approved the request of M/s. Indian Oil Corporation Limited for becoming a co-developer in the above mentioned SEZ, for developing storage facilities for Liquefied Petroleum Gas (LPG), laying interconnecting pipeline and setting up an inland LPG Container (Tanker) Station, in accordance with the co-developer agreement entered into with the developer. (iii) Request of M/s. Hyderabad I....
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....substantial part of the space so developed as a unit. Even though a unit and a co-developer are required to have separate accounts, in such an arrangement the possibility of the capital goods procured by the unit being loaded onto the co-developer to absolve the unit of NFE positive obligation cannot be ruled out. The Board recognized that there was a need to arrive at an arrangement which could ensure that the affairs of the unit and co-developer are adequately ring fenced so as to avoid double dipping which could lead to a potential loss of revenue. The Board directed constitution of a committee under the chairmanship of JS (SEZ), DoC with representatives of CBDT and CBEC as members, to work out such an arrangement. Accordingly, the proposal was deferred. (vi) Request of M/s. Cognizant Technology Solutions India Private Limited for co-developer in the sector specific SEZ for IT/ITES at Sholinganallur, Chennai, Tamil Nadu, being developed by Electronics Corporation of Tamil Nadu Limited (ELCOT) After deliberations, the Board approved the request of M/s. Cognizant Technology Solutions India Private Limited for becoming a co-developer in the above mentioned SEZ, for creation of c....
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....n the processing area of the SEZ, as given in the table: - S. No. Authorised operations No. of units Area per unit (in sqm) as per FSI/FAR norms as applicable Total area (in sqm) 1. Helipad 1 NA 44.3 m x 44.3 m (iii) Request of M/s. G.P. Realtors Private Limited for authorized operations in sector specific SEZ for IT/ITES at village Behrampur, District Gurgaon, Haryana (iv) Request of M/s. Goldsouk International Gems & Jewellery SEZ Private Limited for authorized operations in sector specific SEZ for Gems and Jewellery at village Bhondsi, Tehsil Sohna, District Gurgaon, Haryana In (iii) and (iv) above, DC NSEZ was directed to ascertain the actual requirement of the proposed facilities necessary to support the activities of the processing area of the SEZ, as also the use to which they would be put, and submit a report for consideration of BoA. A location map would also be provided. Accordingly, the proposal was deferred. Item No. 46.4: Requests for de-notification (i) Request of M/s. S2Tech.Com India Private Limited for de-notification of the sector specific SEZ for IT/ITES at Kandukur - village & Mandal, Ranga Reddy District, Andhra Pradesh, notified over an area of ....
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....a, notified over an area of 208 hectares, subject to the DC's certificate that the developers has refunded all the tax/duty benefits, including service tax exemption, availed under the SEZ Act/Rules. Item No. 46.5: Requests for withdrawal of approval (i) Withdrawal of In-principle approval granted to Maharashtra Industrial Development Corporation (MIDC) for setting up of sector specific SEZ for Leather Industry at Yedshi, District Osmanabad, Maharashtra The Board noted that the in-principle approval of the developer has already expired on 2nd July, 2008. The Board, therefore, after deliberations decided to approve the request of Maharashtra Industrial Development Corporation (MIDC) for withdrawal of in-principle approval granted to them for setting up of sector specific SEZ for Leather Industry at Yedshi, District Osmanabad, Maharashtra, over an area of 100 hectares. (ii) Withdrawal of approval granted to M/s. Infinity Jaipur Knowledge City Private Limited for co-developer in the sector specific SEZ for IT/ITES at Kalwara village, Tehsil Sanganer, Jaipur District, Rajasthan developed by M/s. Mahindra World City (Jaipur) Limited The Board decided to approve the request of M/s. ....
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....ration of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Jagir Ammapalayam village, Salem Taluk, Salem District, Tamil Nadu, beyond 25th July 2010. (iv) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Vadapalanji village Madurai District, Tamil Nadu, beyond 25th July 2010. (v) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Viswanathapuram village, Hosur Taluk, Krishnagiri District, Tamil Nadu, beyond 25th July 2010. (vi) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Navalpattu village Tiruchirapalli Taluk, Tiruchirapalli District, Tamil Nadu, beyond 25th July 2010. (vii) Request of Electronics Corporation of Tamil Nadu Limited (ELCOT) for extension of the validity period of formal ....
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....sion of validity of formal approvals After deliberations, the Board decided to grant second extension of validity of formal approval in respect of each of the following 21 (Twenty one) developers for a period of one year beyond the expiry of the validity period:- (i) Request of M/s. Parsvnath SEZ Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Nedumbassery and Chengamanadu villages, Aluva Taluk, Ernakulam District, Kerala, beyond 25th October 2010. (ii) Request of Electronic Corporation of Tamil Nadu Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Vilankurichi, Coimbatore North Taluk, Coimbatore, Tamil Nadu, beyond 15th June 2010. (iii) Request of M/s. Cochin Port Trust for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Port based at Puthuvypeen Ernakulam District, Kerala, beyond 17th April 2011. (iv) Request of M/s. GMR Hyderabad International Airport Limited for second extension of the validity period of formal approval, granted for setting up o....
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....elopment Authority for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Kokapet village, Serilingampally Mandal, Ranga Reddy District, Hyderabad, Andhra Pradesh, beyond 22nd October 2010 (xiv) Request of Gujarat Industrial Development Corporation (GIDC) for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Savli, District, Vadodara, Gujarat, beyond 22nd June 2011 (xv) Request of M/s. Navi Mumbai SEZ Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES-A at Ulwe, Navi Mumbai, Maharashtra, beyond 24th October 2011 (xvi) Request of M/s. Navi Mumbai SEZ Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES-B at Ulwe, Navi Mumbai, Maharashtra, beyond 24th October 2011 (xvii) Request of M/s. Navi Mumbai SEZ Private Limited for second extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES-C at Ulwe, Navi Mumbai, Maha....
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....t 2011 (v) Request of M/s. Mahindra & Mahindra Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at village Owale, Ghodbunder Road, District Thane, Maharashtra, beyond 20th August 2010 (vi) Request of M/s. Metro Valley Business Park Pvt. Ltd. for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Information Technology (IT) at Gurgaon, Faridabad Road, Gurgaon, Haryana, beyond 5th November 2011 (vii) Request of M/s. Orient Craft Infrastructure Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Textiles at Gurgaon, Haryana, beyond 16th August 2011 (viii) Request of M/s. Brahmani Infratech Private Limited for third extension of the validity period of formal approval, granted for setting up of IT/ITES SEZ at Ranga Reddy District, Andhra Pradesh beyond 24th October 2011 The Board also noted that the request for extension in respect of M/s. Bengal Shapoorji Developers Private Limited has been withdrawn as the developer has sought denotification of the SEZ. The Board, howev....
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....iguity Relaxation (i) Request of M/s. Navi Mumbai SEZ (NSEZ) Private Limited for relaxation of conditions of LoA regarding contiguity and multiple entry/exit gates The revised proposal submitted by M/s. Navi Mumbai SEZ (NSEZ) Pvt. Ltd. was considered by the BoA. Keeping in view the objections raised by DoR, the Board directed to constitute a committee, to be chaired by JS(AW), to scrutinize the revised proposal of NSEZ for its proper appreciation. The committee would include DC, SEEPZ, DGEP, representative of CBDT and Chief Commissioner of Customs, Mumbai. The committee would examine all issues related to the revised project including the contiguity issue of each of the five proposed SEZs. Item No. 46.13: Requests for change of sector/broad-banding the sector (i) Request of M/s. Sri Kubera Infracon India Limited for change of sector of in principally approved SEZ at Sadashivpet, Medak District, Andhra Pradesh from 'Strategic manufacturing' to 'Engineering (Strategic manufacturing)' and also extension of in-principle approval The Board noted that the change of sector has been proposed at the instance of DC, VSEZ to bring in more clarity to the existing sector. The Board, theref....
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....for bringing LNG in SEZ and taking it back to DTA. DC, Dahej has been directed to examine the issue regarding duty payable on the transaction involved in such operations and arrive at an acceptable position in this regard. Item No. 46.18: Request of ONGC Petro Additions Limited for notification of permitting net billing of LPG (C4) feed stock supplied from SEZ to DTA for manufacturing PIB - Parity between DTA and SEZ in net billing of petrochemical feedstock After deliberations, the Board directed that DC, Dahej should examine the process of bringing LNG into DTA and taking it back to SEZ. The examination of the proposal for 'net billing' should include the nature of the input/output product, in terms of HS code etc, its valuation, as also the issue regarding duty payable on the transaction involved in such operations so as to arrive at an acceptable position in this regard. The proposal was accordingly, deferred. Item No. 46.19: Requests for extension of validity of LoP Plastic processing units (i) Request for further extension of LoP of M/s. Precision Polyplast Private Limited, a unit in FSEZ Board, after deliberations, extended the LoP of the unit up to 15th July, 2011 as a....
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....a, being developed by M/s. Arshiya International Limited, for import/export of prohibited goods (pulses) and procurement of restricted items from DTA for export. Since the proposal involved procurement of restricted/prohibited items from the DTA, the Board after deliberations rejected the proposal. Item No. 46.24: Request of M/s. Haji Sattar Habib & Sons for setting up of unit for trading of pulses in the FTWZ at village Sai, Taluka Panvel, District Raigad, Maharashtra, being developed by M/s. Arshiya International Limited Since there was no categorical statement that there will be no DTA transaction, the Board after deliberations rejected the proposal. Item No. 46.25: Request of M/s. Qualit Agro Processors for setting up of unit for trading and processing of pulses in the sector specific SEZ for Food Processing at Tuticorin, Tamil Nadu, being developed by M/s. CCCL Pearl City Food Port SEZ Limited. The BoA emphasized that proposals involving consumables like pulses need careful examination so as to ensure that the domestic availability of such products is not affected. After deliberations the Board approved the request of M/s Qualit Agro Processors for setting up of the puls....
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....e order of DC, MEPZ, rejecting its request for broad banding of LoP to include trading activity as part of authorized operations. The Board granted hearing to the appellant. However, after deliberations the appeal was rejected, as the firm had the direct channel available for achieving this objective, outside the SEZ framework. (iii) Appeal of M/s. SE Electricals Ltd. against the order of Development Commissioner, MPEZ SEZ rejecting its request for removal of waste and scrap in DTA which were arisen out of repair/re-engineering and reconditioning of generators/control panels at appellants factory The Board granted hearing to the appellant. As the request made was not permissible within the provisions of SEZ Rules, the Board, after deliberations rejected the appeal. Item No. 46.30: Request for extension of validity of Letters of Permission (LOP) issued to the Plastic Reprocessing Sector at Kandla SEZ. The Board after deliberations deferred this item till the finalization of policy for plastic processing units. Decisions on the Supplementary Agenda Item No.46.31: Requests for co-developers (i) Request of M/s. Stylus Commercial Services Private Limited (SCSPL) for codeveloper ....
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....t of Metro Valley Business Park (P) Limited for authorized operations in the IT SEZ at Gurgaon, Haryana The BoA perused the proposal and after deliberations, the Board decided to approve amendment/ addition in the authorized operations to be carried out in the processing area, as per details given below:- S. No. Name of activity/item Quantum as per existing approval Quantum Requested and Approved 1. Power Plant 50 MW 25 MW 2. Basement equal to plinth area Basement parking Storage instead of parking 3. Kitchenette Nil 1000 sqm. 4. Creche Nil 50 sqm. Item No. 46.33: Request for increase/decrease in area Request of M/s Divi's Laboratories Ltd. for addition of area in the sector specific SEZ for Pharmaceuticals at Chippada village, Bhimili Mandal, Visakhapatnam, Andhra Pradesh The Board after deliberations, decided to approve the request of M/s Divi's Laboratories Ltd. for addition of land admeasuring 17.648 hectares to the already notified area of the SEZ subject to the contiguity of the SEZ being maintained. Item No. 46.34: Request for de-notification Request of M/s. Bengal Shapoorji Infrastructure Development Private Limited for denotification of the sector....
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....g up of sector specific SEZ for Electronic Hardware and Software including ITES at Sriperumbudur, Chennai, Tamil Nadu beyond 22nd May 2011 Item No.46.38: Requests for third extension of validity of formal approvals After deliberations, the Board decided to grant third extension of validity of formal approval in respect of each of the following 05 (Five) developers for a period of one year beyond the expiry of the validity period:- (i) Request of M/s. Bagmane Builders Private Limited for third extension of the validity period of formal approval, granted for setting up of IT/ITES SEZ at KR Puram, Bangalore North, Karnataka beyond 25th October 2011 (ii) Request of M/s. Satyam Computer Services Ltd. for third extension of the validity period of formal approval, for setting up of IT/ITES SEZ at Bahadurpally, Ranga Reddy District, Hyderabad, Andhra Pradesh, beyond 19th June 2011 (iii) Request of Maharashtra Industrial Development Corporation for third extension of the validity period of formal approval, granted for setting up of Multi Product SEZ at Nandgaonpeth, District Amravati, Maharashtra, beyond 2nd April 2011 (iv) Request of Maharashtra Industrial Development Corporation for....
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.... 4th year (i) Request of M/s. Wockhardt Limited a unit in the Pharmaceutical SEZ being developed by M/s. Wockhardt Infrastructure Development Limited at MIDC Industrial Area, Shendre, Aurangabad, Maharashtra, for extension of LoP beyond 19.07.2011 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. 19th July, 2012). (ii) Request of M/s. Godrej & Boyce Manufacturing Company Limited, a unit in M/s. Dahej SEZ Limited, Gujarat for extension of LoP beyond 29th May 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. 29th May, 2012). Board, however directed the DC to monitor the progress of the unit. (iii) Requests of M/s. Hangers Plus (I) Private Limited a unit in M/s. Mahindra World City SEZ, Chennai for extension of LoP beyond 31st March 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. 31st March, 2012). Item No. 46.42: Request for extension of LoP of units beyond 5th year....
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....rations, approved the request of the unit for import of used cooking oil for manufacturing Biodiesel, subject to the condition that:- 1) The imported cooking oil shall be exclusively used for manufacturing of Biodiesel and export thereof. 2) No DTA transaction shall be allowed. BoA directed that DC, shall ensure compliance of the above conditions by the unit. Item No. 46.47: Request for extension of validity of LoP Plastic processing units (i) Request for further extension of LoP of M/s. Amarnath Enviroplast Limited, a unit in FSEZ The Board, after deliberations, extended the LoP of the unit up to 15.07.11 as a stop gap arrangement till the finalization of policy regarding plastic processing units. Item No. 46.48: Request of M/s. JSL Limited for submission of Bond/Bank Guarantee in respect of liability arising on cancellation of Form-I under the Central Sales Tax, 1956 in respect of liability pertaining to Entry Tax DC Falta informed that M/s. JSL Limited have already paid the dues on account of customs duty, excise duty, service tax, refund of export benefits (DEPB) and entry tax amounting to Rs. 101.60 crores. DC has also informed that the developer has confirmed that co....