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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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....r one year beyond 15.07.2019 up to 15.07.2020. The Board, after deliberations, 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 19^th January, 2020....
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....ltancy Services Ltd. for co-developer status in M/s. Maharashtra Airport Development Company Ltd. at Nagpur, 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 S....
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....s) 90.5(i) Request of M/s. Sierra Atlantic Software Services Limited a co-developer in M/s. TSIIC Ltd. an IT/ITES SEZ at Nanakramguda 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....
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....r of IT/ITES SEZ at Plot No. TZ-02 & 2A, Sector-Techzone, Greater Noida (Uttar Pradesh) for change in shareholding pattern of the company. The Board noted that the proposal does not indicate whether it has the approval under relevant 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/lo....
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....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 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. ....
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.... Cause Notice to the Co-developer under Section 10 (3) of the SEZ Act, 2005 and the cause shown by the developer within the prescribed period of three months for the alleged irregularities along with the recommendations of the DC may be furnished to the Board for consideration. 90.7(iii) Request of M/s. Venus Garments, a unit in Surat Apparel Park SEZ, Surat for renewal of Letter of Approval (LoA). The Board, 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 & r....
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....Board that the unit intends to restart their business and have sufficient orders in hand. The Board, after deliberations, allowed the appeal for withdrawal of in-principle exit permission. 90.8(ii) Appeal filed by M/s Mahalaxmi Jewel Exports against the decision of the UAC for cancellation of their LoA as conveyed vide DC, NSEZ letter dated 20.02.2019. The Board, noted that UAC, NSEZ observed as under; (a) The unit has been persistently 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 De....
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.... and scrap which cannot be considered in terms of Rule 18(4)(a) of SEZ Rules, 2006. The Board, heard the appellant and the submissions made by him in his appeal and additional submissions : (i) The unit proposes for import for the purpose of 100% export and no DTA sale. The unit propose for import of plastic bottles from Asia, Australia and Vietnam and after cleaning/segregation and crushing in machine after making granules, the same will be exported. (ii)The PET Plastic Bottle Scrap was kept out of purview of the PN 392/92 and was freely importable without 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 inclu....
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....cable 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. 90.11 Renewal of LoA of used and worn clothing unit (one proposal) 90.11 (i) Proposal of M/s Texool Spinners for renewal of LOA for next five years in terms of Rule 18(4) of SEZ Rules' 2006. The Board, after deliberations, decided to extend the validity of the LoP of the unit upto 30.11.2019 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) ....
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....pellant; (i) That the LoA of the unit which was valid upto 31.03.2017 was suspended prematurely on 14.01.2016 on the ground of customs proceedings in respect of some Bills of Entry, however, the proceedings have been decided in appellant's favour. (ii) That after the cancellation of LoA, in order to save the overseas buyers and to maintain the continuity of business the export orders were diverted to the sister concern M/s Pertech Exports Pvt. Ltd. Due to cancellation of LoA of the appellant the export orders were diverted to the above unit and during FY 2018-19 identical items valued approx. USD 104.45 lakh were exported by the appellant and BRC for approx USD 35.99 lakh 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 o....
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....elf admitted that it cleared the goods into DTA against payments in INR. (vi) As regards contention of the appellant that Rule 54 of the SEZ Rules, 2006 being not followed in this case, it was noted that the UAC cancelled the LoA of the unit in terms of the provisions of Section 16(1) of the SEZ Act, 2005 and appellant was given an opportunity of being heard. There seems to be no deviation by the UAC, as Rule 54 cannot be interpreted in isolation. The proceedings under Section 16(1) of SEZ Act, 2005 and Rule 54 of SEZ Rules, 2006 are independent in nature. The LoA was cancelled under Section 16(1) of the SEZ Act, 2005. Now that the unit has negative NFE also, the matter may be placed before the UAC for review and taking further action under FT(D&R) Act, 1992. The Board, after deliberations, decided that the decision of UAC under Section 16(1) of SEZ Act, 2005 was in order and rejected the appeal. ***** ANNEXURE - I List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 18th June, 2019 under the Chairmanship of Commerce Secretary, Department of Commerce. l. Shri Anup Wadhawan, Chairman, BoA & Commerce Secretary,....