TaxTMI 
TaxTMI 
TaxTMI 
Minutes of the 90th meeting of the. Board of Approval for SEZ held on 18th June, 2019 to consider setting up of Special Economic Zones and other miscellaneous proposals
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....eliberations, approved extension of the validity of the formal approval up to 15th July, 2020. Item No. 90.3 Requests for extension of LoA beyond 3rd Year onwards (Two proposals) 90.3(i) Request of M/s. Mundra Solar Limited (MSL) a manufacturing unit of M/s. Adani Ports & SEZ at Mundra for extension of the validity of Letter of Approval (LOA) beyond 19.04.2019 for one year up to 18.04.2020. The Board, observed that the third extension of eight months has been granted to the unit by DC, M/s Adani Ports & SEZ beyond his powers as provided in the second proviso to Rule 19(4) of SEZ Rules, 2006. The Board, after deliberations, decided to grant post facto approval for the period upto 19th April, 2019 and approved extension of the validity of the LoA up to 18th April, 2020. 90.3(ii) Request of M/s Xenosoft Technologies (India) Pvt. Ltd. Unit in M/s. APIIC Ltd. Madhurwada IT/ITES SEZ at Visakhapatnam for extension of Letter of Approval beyond 3 Years for a period of 6 months up to 19th January, 2020. The Board, after deliberations, approved extension of the validity of the LoA up to 19th January, 2020. Item No. 90.4 Requests for co-developer (Eight proposals) 90.4(i) Request of M/s....
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....r, Maharashtra. The Board, after deliberations, approved the proposal of M/s. Tata Consultancy Services Ltd. for infrastructure facilities for IT/ITES in an area of 50.85 acres in accordance with the co-developer agreement entered into with the developer subject to standard terms and conditions as per SEZ Act and Rules provided that the lease period does not exceed 30 years (Renewable). 90.4(v) Request of M/s. Arshiya Data Centre Private Limited for co-developer status in M/s. Arshiya Limited at Panvel, Mumbai, Maharashtra. The Board, after deliberations, approved the proposal of M/s. Arshiya Data Centre Private Limited for construction, operation & maintenance of one new building for Data Centre for an area of 1.3607 ha in accordance with the co-developer agreement entered into with the developer subject to standard terms and conditions as per SEZ Act and Rules provided that the lease period does not exceed 30 years (Renewable). 90.4(vi) Request of M/s. Cella Warehousing Private Limited for co-developer status in M/s. J. Matadee Free Trade Zone Private Limited at Sriperumbudur Taluk, Kancheepuram District, Tamil Nadu. The Board, after deliberations, approved the proposal of M....
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....kramguda village, Serilingampally Mandal, Ranga Reddy District, Telangana for change in name to M/s. Hitachi Consulting Software Services India Pvt. Ltd. The Board, after deliberations, approved the proposal for change in name from M/s. Sierra Atlantic Software Services Limited to M/s. Hitachi Consulting Software Services India Pvt. Ltd. with following conditions:- i. Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered co-developer entity; ii. Fulfillment of all eligibility criteria applicable to co-developer, including security clearances etc., by the altered co-developer entity and its constituents; iii. Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv. Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. v. The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity....
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.... statutes. The Board, after deliberations, approved the proposal subject to approval by relevant statutory authorities with following conditions:- i. Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity; ii. Fulfillment of all eligibility criteria applicable to developer, including security clearances etc., by the altered developer entity and its constituents; iii. Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv. Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. v. The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. vi. The applicant shall comply with relevant State Governmen....
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....ility of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv. Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. v. The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. vi. The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable. vii. The co-developer shall furnish details of PAN and jurisdictional assessing officer of the co-developer to CBDT. Item No. 90.6 Proposals for renewal of LoP for worn and used clothing units (one proposal). 90.6(i) Request of M/s. Gujarat Textiles, a garments re-cycling unit, for renewal of its LoA beyond 30.04.2019 The Board, after deliberations, decided to extend the validit....
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....rd, noted that the LoA of the unit expired on 18.04.2011. The unit has applied for exit from the SEZ scheme and the application for renewal of LoA for the third block of five years is based upon the requirement to clear their capital goods, raw materials and finished goods lying at the unit from the SEZ. The Board, after deliberations, decided to extend the LoA of the unit for the 3rd block of five years i.e. upto 18.04.2021 subject to the condition that all terms and conditions for exit as provided under Rule 74 of the SEZ Rules, 2006 are complied with. 90.7(iv) Request of M/s. Reliance Industries Ltd., a unit in Reliance Jamnagar SEZ at Village- Meghpar/Padana, Tauka- Lalpur, Jamnagar for procurement of restricted items from the DTA for Infrastructure development & repairing facility of existing infrastructure facilities. The Board, after deliberations decided to approve the proposal subject to the condition that DC, Reliance Jamnagar SEZ will ensure compliance of all other relevant conditions. 90.7(v) Request of M/s. Reliance Industries Ltd., SEZ (Developer) at Village-Meghpar/Padana, Tauka- Lalpur, Jamnagar for procurement of restricted items by SEZ developer for Infrastruc....
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....y violating the provisions of SEZ Act/SEZ Rules and terms & conditions of LOA/Bond-cum-LUT. (b) The unit has consistently failed to submit APRs within stipulated time. (c) The unit has grossly misused the provisions of SEZ Act, 2005 and SEZ Rules, 2006 & other exemption granted to the NSEZ units. (d) That the unit did not respond to SCN/notices issued to them. The Board, heard the appellant, took cognizance of written submissions in appeal and during the course of hearing the appellant submitted that : (a) That the impugned order has been passed ex-parte by the Approval Committee without providing reasonable opportunity of being heard. (b) The unit of the appellant is lying closed since December, 2016 and other two properties addresses of which are mentioned in the order have been auctioned by the Bank towards a loan liability possession and therefore the notices could not be received by them. (c) That the adverse decision has been taken against the appellant merely on the basis of allegations made by DRI in the Customs proceedings initiated by them. That the allegations made in the Show Cause Notice dated 09.06.2017 issued by the DRI are not sustainable and the same h....
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....ithout any restriction/without being subjected to CIPET Test. That PET Plastic Scrap is always regarded as Environmental Friendly Non-polluted /nonhazardous/non-toxic items. (iii) That their proposal is for recycling of non-polluting/non-toxic/non-hazardous, Pet Bottle Scrap, therefore, it is out of the ambit of restriction of Rule 18(4) of the SEZ Rules. (iv) That their proposal is for 100% export of Pet Plastic granulation/recycled products and that no DTA sales are involved as such rejection of their proposal by UAC is inexplicable. They undertake to furnish affidavit to this effect which included their undertaking to abide by all applicable pollution/environmental law. The Board noted that as per the Hazardous and Other Wastes (Management & Transboundary Movement) Amendment Rules, 2019, solid plastic waste has been prohibited from import into the country including in Special Economic Zones (SEZs) and by Export Oriented Units (EoUs) and hence the request of the unit under Rule 18(4) of SEZ Rules, 2006 for setting up of new unit for manufacturing of plastic pre-processed crushing/granules from Pet Bottles wastes was rejected by the Board. Decision on Supplementary Agenda I....
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....9 as decided in the case of such other 15 worn clothing units in its 86th meeting held on 22.11.2018 in order to keep uniformity subject to the condition that DC should ensure that no additional approval or expansion in capacity is granted to the unit. The Board further directed that the extension shall be subject to the outcome on the recommendations of the Committee formed to examine plastic recycling and worn and used clothing units. Item No. 90.12 Proposal for setting up of an FTWZ (In-principle approval) (one proposal) 90.12 (i) Request of M/s. NDR Infrastructure Pvt. Ltd. seeking in-principle approval for setting up of a FTWZ at Nandiyambakkam Village, Minjur Panchayat, Ponneri Taluk, Tiruvallur District, Tamil Nadu in an area of 40 Ha (100 acres). The Board, after deliberations, approved the proposal for in-principle approval for setting up of FTWZ at Nandiyambakkam Village, Minjur Panchayat, Ponneri Taluk, Tiruvallur District, Tamil Nadu over an area of 40 Ha (100 acres). 90.13 Proposal for setting up of new SEZ (one proposal) 90.13 (i) Request of M/s. Yash Technologies Pvt. Ltd. for setting up of an SEZ for IT/ITES at Plot No. 1, Scheme No. 166, Distt. Indore, Madhya....
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....h were received. (iii) That the adverse orders dated 31.05.2016 and 09.06.2016 of the Ld. Commissioner of Customs, Noida have been set aside by the Hon'ble Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad vide order dated 11.09.2018. (iv) That Rule 54 of the SEZ Rules, 2006 provides that in case the UAC concludes that a unit has not achieved positive NFE or failed to abide by the terms and conditions of the LOA then penal action under the provisions of the FTDR Act, 1992 may be initiated and thus the UAC did not adhere to the aforesaid provisions of SEZ Rules, 2006. The Board observed that, (i) The UAC decided to cancel the LoA of the unit in terms of Section 16 of the SEZ Act, 2005 after providing personal hearing to the unit on 10.02.2016 wherein Shri P. V. Khullar, Director of M/s Morgan Tectronics Ltd. admitted to the mis-declarations and discrepancies in the two bills of entry. The unit had voluntarily deposited an amount of ₹ 50 lakhs towards his duty/penalty/fine liability emerging as the outcome of the investigation. Since the mis-declaration and discrepancies were found more than once, which clearly establishes the persistent violatio....