TaxTMI 
TaxTMI 
Minutes of the 100th meeting of the Board of Approval for SEZ held on 25th September, 2020 to consider setting up of Special Economic Zones and other miscellaneous proposals
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....loper as law cannot work on precedents. Accordingly, this Department had sought for the legal opinion from the Department of Legal Affairs in this matter. The Board noted that the Department of Legal Affairs as per their ID note dated 23.09.2020, have inter-alia held that since there is no bar under the SEZ Act for cancellation of a Letter of Approval granted to a co-developer for infrastructure development in a special economic zone, it appears that Letter of Approval granted to the co-developer M/s Artha Builder can be cancelled by invoking the provisions of Section 21 of the General Clauses Act, 1897. However, the administrative department is advised to appropriately amend the SEZ Act and Rules to have a clear enabling provision for cancellation of Letter of Approval in such situations. In view of the foregoing, the Board decided to ratify the minutes of the 99th meeting of the BoA held on 31st July, 2020. 100.2 Extension of Formal Approval to developer (Four proposals) Item no. 100.2 (i) Request of M/s Manipur IT SEZ Project Development Company Limited (MIPDCO) for further extension of the validity period of the formal approval granted for setting up a Sector Specif....
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.... Board was further informed that the matter is now listed for 08.10.2020 in the NCLT and shall be settled. The Board, after deliberations, approved extension of validity of LoA of the unit for a period of one year, i.e. up to 15.09.2021. Item no.100.3(iii) Request of M/s. Nissi Engineering Solutions Pvt. Ltd., a unit in AMRL Hi Tech City Ltd, Multi Product SEZ, Nanguneri, Tirunelveli District, Tamil Nadu for extension of Letter of Approval (LOA) from 31.07.2020 to 31.12.2021. The Board, after deliberations, approved extension of validity of LoA for a period of one year, i.e. up to 31.07.2021. 100.4 Request for change of name/shareholding pattern/merger-demerger (seven proposals) Item no. 100.4(i) Request for change of Developer of M/s L&T Shipbuilding SEZ at Kattupalli, Tiruvallur, Tamil Nadu in view of merger of M/s. L&T Shipbuilding Limited with M/s. Larsen & Toubro Limited at Kattupalli, Tiruvallur, Tamil Nadu. The Board, after deliberations, approved the proposal for change of Developer of L&T Shipbuilding SEZ from M/s. L&T Shipbuilding Limited to M/s. Larsen & Toubro Limited in view of the merger of the Companies with the following conditions:- i. Se....
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....hange, 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 developer shall furnish details of PAN and jurisdictional assessing officer of the developer to CBDT. Item no.100.4 (iii) Proposal of M/s NIIT Technologies Limited, Developer of IT/ITES SEZ at Plot No. TZ-02 & 2A, Techzone, Gr. Noida (Uttar Pradesh) for change of name of the company to "COFORGE Limited". The Board, after deliberations, approved the proposal for change of name of the company to "COFORGE Limited", with the following conditions:- i. S....
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....urisdictional 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. 100.4 (v) Request of M/s. Nxtra Data Ltd. SEZ, Co-Developer located at Plot No.28 & 13/10A, 13/10B in MIDC-IT/ITES SEZ, Rajiv Gandhi Infotech Park, Hinjewadi, Phase-III, Pune for approval of Change in Shareholding Pattern. The Board, after deliberations, approved the proposal for change in shareholding pattern subject to approval by relevant statutory bodies with the following conditions:- i. Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered co-developer entity; ii. Fulfilment of all eligibility criteria applicable t....
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....in/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 developer shall furnish details of PAN and jurisdictional assessing officer of the developer to CBDT. Item no. 100.4(vii) Request of M/s. Sai Wardha Power Generation Limited SEZ (developer), for change in shareholding pattern and list of directors of the company post NCLT order. The Board, after deliberations, approved the proposal for change in shareholding pattern and list of directors of the company with the following conditions:- i. Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity; ii. Fulfilment 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 relevant rules of Revenue/....
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....08.2019. Item no.100.5 (iii) Request of M/s. Sirishanthi Commercial Spaces LLP for co-developer status in M/s GAR Corporation Pvt. Ltd. IT/ITES SEZ at Sy. No. 89(P), Kokapet Village, Gandipet Mandal, Ranga Reddy District, Telangana. The Board, after deliberations, approved the proposal of M/s. Sirishanthi Commercial Spaces LLP for construction of IT/ITES building and operating and maintaining the facility within the framework of SEZ in an area of 20,330 sq.ft. in part of 2nd floor & 3rd floor in Tower-9 in the SEZ in accordance with the co-developer agreement dated 07.02.2020 entered into with the developer, subject to compliance with relevant provisions of SEZ Act & Rules. The lease period shall be in accordance with DoC's Instruction no. 98 dated 29.08.2019. Item no. 100.5(iv) Request of M/s. Spacetech SEZ Developers Pvt. Ltd. for co-developer status in M/s Phoenix Tech zone Pvt. Ltd. SEZ at Sy. No. 115/35, Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District, Telangana. The Board, after deliberations, approved the proposal of M/s. Spacetech SEZ Developers Pvt. Ltd. for making further investment to upgrade, develop infrastructure and undertake operat....
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....opment, operation and maintenance of the SEZ and other activities. The Board, after deliberations, approved the proposal of M/s. Phoenix IT Infrastructure India Pvt. Ltd to develop, market, lease, operate and maintain the Co-Developer Property (the co-developer space and co-developer land of 1.04 Ha along with all rights, interests, benefits attached thereto collectively referred as Co-developer's property as defined in the Co-Developer Agreement) and also carry out default authorized operations in accordance with the co-developer agreement dated 08.09.2020 entered into with the developer, subject to compliance with relevant provisions of SEZ Act & Rules. The lease period shall be in accordance with DoC's Instruction no. 98 dated 29.08.2019. 100.6 Miscellaneous cases (eleven proposals) Item no. 100.6(i) Request of M/s. Panama Petrochem Limited, a unit in Dahej SEZ for granting permission for import of Used Cooking oil (HSN 15180040) with other grades of Vegetables oils for manufacturing. The Board, after deliberations, decided to approve the proposal subject to the condition that goods manufactured out of such prohibited imported goods are exported in its entire....
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.... proposal of M/s. Phoenix Tech Zone Pvt. Ltd.,(developer) for amendment in the terms of co-developer agreement dated 22.02.2019 with M/s Phoenix IT Hub Pvt. Ltd (co-developer) in accordance with the Supplemental codeveloper agreement dated 09.09.2020 entered into with the developer, subject to compliance with relevant provisions of SEZ Act & Rules. Resultantly, the co-developer will have the leasehold interest over an area of 3 acres for infrastructure development in place of 1.20 acres as earlier. Item no.100.6(vii) Request of M/s. Nxtra Data Ltd. (Co-Developer) in MIDC IT/ITES SEZ, Pune located at Plot No. 28 and Plot No.13/10/A & Plot No. 13/10/B, Rajiv Gandhi Infotech Park, MIDC, Hinjewadi, Phase-III, Pune, for increase in area from existing 2.40 Ha to 9.28 Ha. i.e. increase by 6.88 Ha (68800 sq.mtrs.) located at plot No. P-1/1 & P-1/2. The Board, after deliberations, approved the proposal of M/s. Nxtra Data Ltd., co-developer for expansion in area from 2.40 Ha to 9.28 Ha at Plot no. P-1/1 & P-1/2 to the existing SEZ located at Plot no. 28 & Plot no. 13/10/A & 13/10/B, Rajiv Gandhi Infotech Park, MIDC, Hinjewadi, Phase III, Pune subject to execution of necessary agreement....
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....to registered CPCB recyclers and also seized the goods lying in the premises and that only after payment of all the duties and penalties and redemption fine as per the CESTAT Order, the seizure was vacated and the goods were ordered to be cleared only to CPCB registered recyclers ii. The unit was issued SCN for mis-declaration for providing false information in their APR for the year 2005-06 and that a complaint against the Chartered Accountant (CA) was also made by department to Institute of Chartered Accountants for taking appropriate action against the CA for certifying false APR iii. The unit consistently failed to achieve positive NFE both during the period 2005-2010 and 2014-2019 (for period 2010-14, LoA was not renewed by BoA). The above decision of the Board was challenged by the unit in the High Court of Gujarat at Ahmedabad through Special Civil Application No. 13735 of 2019. The High Court quashed and set aside the impugned decision of the BOA taken in the 89th meeting held on 22nd April, 2019 and directed to reconsider the application filed by the petitioners for renewal/extension of LoA after giving adequate opportunity of hearing to the petitioner....
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....g out anything new on how it can achieve the norms. The fact that the unit has not been able to achieve a positive Net Foreign Exchange in two five year cycles coupled with its track record of violations indicates that the business as a SEZ unit is not sustainable. In view of the foregoing, the Board decided to reject the request of the Unit for extension of LoA. Decision on Supplementary Agenda 100.7 Requests for co-developer Item no. 100.7(i) Request of M/s. BVC Logistics Pvt. Ltd., Basement, SDF III for co-developer status in SEEPZ SEZ at SEEPZ SEZ, Andheri (E), Mumbai. The Board, after deliberations, decided to send back the proposal to DC, SEEPZ for reconsideration. 100.8 Request for change of ownership Item no. 100.8(i) Request for change of ownership due to Business Transfer Agreement between M/s. Embassy Property Development Pvt Ltd, Co-Developer of M/s SNP SEZ and ESNP Property Builders Developers Pvt. Ltd. The Board, after deliberations, approved the proposal for change of ownership with the following conditions:- i. Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered co-developer entit....