Minutes of the 78th meeting of the. Board of Approval for SEZ held on 03rd July 2017 to consider setting up of Special Economic Zones and other miscellaneous proposals - SEZ - Minutes of the 78th meeting of the SEZ

Minutes of the 78th meeting of the Board of Approval for SEZ held on 3 rd July 2017 The Seventy Eighth (78th) meeting of the Board of Approval (BoA) for Special Economic Zones (SEZs) was held on 3rd July, 2017 under the Chairpersonship of Ms. Rita Teaotia, Secretary, Department of Commerce, at 11.00 A.M. in Room No. 143, Udyog Bhawan, New Delhi. The list of participants is Annexed (Annexure-I). Item No. 78.1: Requests for extension of validity of formal approvals (12 proposals) BoA in its meeting held on 14th September, 2012, examining similar cases observed as under: - The Board advised the Development Commissioners to recommend the requests for extension of formal approval beyond 5th year and onwards only after satisfying that the developer has taken sufficient steps towards operationalisation of the project and further extension is based on justifiable reasons. Board also observed that extensions may not be granted as a matter of routine unless some progress has been made on ground by the developers. The Board, therefore, after deliberations, extended the validity of the formal approval to the requests for extensions beyond fifth years for a period of one year and those beyond sixth year for a period of 6 months from the date of expiry of last extension (i) Request of M/s. HBS Pharma SEZ Pvt. Ltd., for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Pharmaceuticals at Panoli Industrial Estate, District Bharuch, Gujarat beyond 16-06-2017. The Board, after deliberations, extended the validity of the formal approval up to 16th June, 2018. (ii) to (ix) Further extension of the validity period of formal approval, granted for setting up of eight by M/s. Navi Mumbai SEZ Pvt. Ltd as in agenda item no. 78.1 (ii to ix) The Board was apprised that extension of the validity of the formal approval up to 26th February, 2016 in respect of two of the eight above SEZs (Sl. No. IV V) were approved by the BoA in its 65th meeting held on May, 2015 with the condition that the Developer shall furnish necessary clarifications to the State Government of Maharashtra on the issues raised by it. Further, the Board had earlier extended the validity of the formal approval in respect of three of the above eight SEZs (Sl. No II, III VI) up to January, 2016 25th January, 2016 with the condition that the Developer shall submit a clear-cut development plan and action plan of the SEZ and approval of the State Government of Maharashtra within that time-frame. DC, Navi Mumbai SEZ was directed to verify the expenditure claimed by the developer to have incurred for the development of these SEZs alongwith progress made on ground. The Board was also apprised that the PAC and CAG had observed that M/s Navi Mumbai SEZs in Maharashtra were granted routine extensions even though the Developer had not complied with the conditions attached to the approval. The Board further noted that neither the Developer nor the Government of Maharashtra had come forward with concrete development plans. It was informed that a letter no BOA-2017/CR 78/Ind-2 dated 30.6.2017 has been received from Shri Sanjay Degaonkar, Joint Secretary, Industries, Energy Labour Department, Government of Maharashtra stating that Government of Maharashtra is in receipt of application from NMSEZ for extension of 8 SEZs and Government of Maharashtra, CIDCO and NMSEZ are in process of resolving certain operational and regulatory issues. The process may take some more time and hence, the case may be deferred. In view of the fact that the issue has been pending since 2015, the Board after deliberations, decided to allow the Government of Maharashtra up to 30.08.2017 to resolve the operational and regulatory issues with the developer and inform the Board of its decision by that date failing which the SEZs would automatically stand de-notified. (x) Request of M/s. GOCL Corporation Limited (Formerly Gulf Oil Corporation Ltd.) for further extension of the validity period of formal approval, granted for setting up of IT/ITES/BPO[Electronic Hardware SEZ at Kattigenahalli Venkatala Villages, Yelahanka Hobli, Bangalore, Karnataka beyond 17th June, 2017 The Board, after deliberations, extended the validity of the formal approval up to 17th June, 2018. (xi) Request of M/s. Mayar Infrastructure Development Pvt. Ltd. for further extension of the validity of formal approval, granted for setting up of Biotechnology Sector Specific SEZ at Village Rahka and Nimoth, Tehsil Sohna, Gurgaon (Haryana) beyond 13.07.2017. The Board, after deliberations, extended the validity of the formal approval up to 13th July, 2018. (xii) Request of M/s. Metro Valley Business Park Pvt. Ltd. for further extension of the validity of formal approval, granted for setting up of IT/ITES SEZ at 5 th milestone, Village Gwal Pahari, Gurgaon-Faridabad Road, Distt. Gurgaon (Haryana) beyond 05.05.2015. The representative of Government of Haryana informed that the Government of Haryana had approached the A.G. for legal opinion in the matter and therefore, requested for deferment of the proposal. It was observed that as per earlier dated 28.12.2016, Government of Haryana had conveyed that as per orders of Hon'ble CM Haryana, all the lapsed permissions pertaining to the SEZ may be restored afresh with a minimum validity period of 3 years, so as to ensure that the project is implemented in a time bound manner. Further, vide letter dated 7.3.2017, Director of Industries and Commerce, Govt of Haryana asked the developer to submit revised undertaking towards implementation of the SEZ project at own risk and costs, within 7 days, failing which recommendation to Gol for extension of 3 years shall be withdrawn. Director, Industries confirmed that the undertaking from the developer has been received. Nevertheless, in view of the decision by Government of Haryana to seek the opinion of A.G. in the matter, he requested that proposal may be deferred. In view of the request of the State Government, the Board allowed time up to 31.07.2017 to the State Government for inputs if any, on the proposal to the Board. Item No. 78.2 Requests for extension of LoP beyond 3rd Year onwards (6 proposals) As per Rule 18(1) of the SEZ Rules , the approval Committee may approve or reject a proposal for setting up of Unit in a Special Economic Zone. Cases for consideration of extension of Letter of Permission (LoP)s i.r.o units in SEZs are governed by Rule 19(4) of SEZ Rules . Rule 19(4) states that an LoP shall be valid for one year. First Proviso grants power to DCs for extending the LoP not exceeding 2 years. Second Proviso grants further power to DCs for extending the LoP for one more year but subject to the condition that two-thirds of activities including construction, relating to the setting up of the Unit is complete and a Chartered Engineer's certificate to this effect is submitted by the entrepreneur. Extensions beyond 3 rd year (in cases where two-third activities are not complete) and 4th year are granted by BoA. BoA can extend the validity for a period of one year at a time. There is no time limit up to which the Board can extend the validity (i) Request of M/s Lanco Solar Private Ltd in M/s Lanco Solar Pvt. Ltd SEZ for extension of Letter of Approval beyond 28.06.2017 for a period of one year upto 28.06.2018. The Board, after deliberations, extended the validity of the LoP up to 28th June, 2018. (ii) Request of M/s PreciStat IT Solutions Pvt. Ltd. for extension of Letter of Permission (LoP) beyond 31.05.2017 for a period of one year upto 30.05.2018. The Board, after deliberations, extended the validity of the LoP up to 30th May, 2018. (iii) Request of M/s. KPIT Technologies Ltd., in the Pune MIDC SEZ for extension of Letter of Approval (LOA) beyond 28.06.2017 for 1 year up to 28.06.2018. The Board, after deliberations, extended the validity of the LoP up to 28 th June, 2018. (iv) Request of M/s. Biomedical Life Sciences Private Limited in the Zydus - Pharmaceutical-SEZ, Matoda, Ahmedabad for extension of Letter of Permission (LoP) beyond 23-06-2017 for 01 (one) year more upto 23-06-2018. The Board, after deliberations, extended the validity of the LoP up to 23 rd June, 2018. (v) Request of M/s. Bremels Rubber Industries Private Limited in the ASPEN SEZ (Formerly Synefra SEZ) Palimar, Nandikaur Village, Padubidri, Udupi Taluk, Karnataka for extension of Letter of Permission (LOP) beyond three years up to 25.06.2018. The Board, after deliberations, extended the validity of the LoP up to 25th June, 2018. (vi) Request of M/s. Dr. Reddy's Laboratories in the VSEZ SEZ for extension of Letter of Permission (LoP) beyond 07.06.2017 for a period of one year upto 07.06.2018. The Board, after deliberations, extended the validity of the LoP up to 7th June, 2018. Item No. 78.3 Requests for co-developer (3 proposals) (i) Request of M/s. GAR Son Builders LLP for co-developer in the sector specific SEZ for IT/ITES at sy. No. 107, Kokapet Village, Gandipet Mandal, Ranga Reddy District, Telangana being developed by M/s. GAR Corporation Pvt. Ltd. After deliberations, the Board approved the proposal of M/s. GAR Son Builders LLP for construction, development, investment in the development of internal and external infrastructure, leasing, operation maintenance of tower - III and Tower-IV (Total 4 towers are being developed in the SEZ, over an area of 2.63 acres of land in accordance with the codeveloper 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). (ii) Request of M/S. Felix IT Society for co-developer in the sector specific SEZ for IT/ITES at Sy No. 141 142, Nanakramguda Village, Serilingampally Mandal, Ranga Reddy District, Telangana being developed by M/s. BSR Builders LLP After deliberations, the Board approved the proposal of M/s. Felix IT Society to develop the authorized operations such as interior fittings and services, entire electrification of the building, HVAC, Fire Fighting Systems and all interiors like built to suit systems which will enable Plug Play facility and also provide 100% power back-up, uninterrupted power supply or as per the clients requirements and the co-developer shall operate and maintain 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). (iii) Request of M/s. Reliance Aerostructure Limited for co-developer in the multi product SEZ at Nagpur, Maharashtra being developed by M/S. Maharashtra Airport Development Company Ltd. (MADC) After deliberations, the Board approved the proposal of M/s. Reliance Aerostructure Limited for development of Aerospace Park with related infrastructure facilities and services over an area of 104 acres in SEZ, for development, maintenance and repair of infrastructure at site including security, fire protection system, water treatment, storm drainage sewage disposal, HVAC systems, landscaping water bodies, housekeeping services, transport, PMC services, access control monitoring, road network, commercial or industrial construction, advertising marketing and other consultancy services and undertaking other authorized operations as per Instruction No. 50 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). Item No. 78.4 : Change of Shareholding Pattern Cases (10 proposals) With a view to promote the ease of doing business in India and that restructuring of entity/ business is a fairly common occurrence, BoA in its 69th meeting held on 23.02.2016 decided that provisions of Rule 74A shall not apply to SEZ Units that do not exit or opt out of the SEZ Scheme by transferring its assets and liabilities to another person and the SEZ Unit continues to operate as a going concern in the situations mentioned above. The UACs concerned, may consider such requests under Rule 19(2) of the SEZ Rules, 2006 . In so far as Business Transfer Agreement is concerned, it was explained that certain acquisitions happen globally as a result of Business Transfer Agreement which result in transfer of the SEZ unit of the Indian company on a going concern basis to the acquirer. The BoA decided that such cases resulting in change of ownership would be decided on merits by the Board of Approvals on a case to case basis. * Proposal to incorporate the above decision of BoA in SEZ Rules, 2006 has been approved and was sent to DLA for vetting. (i) Request of M/s. AON HR Services India Pvt. Ltd., a unit in IT/ITES SEZ of M/s. Candor Gurgaon One Realty Projects Pvt. Ltd., Village Tikri, Sector-48, Gurgaon (Haryana) for transfer of shares exceeding 50% to another entity - regarding. The Board, after deliberations, approved the proposal for transfer of shares exceeding 50% to another entity subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit 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. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (ii) Request of M/s. Moldex Composites Pvt. Ltd, Plot No.194 195 a unit in Surat SEZ, for transfer of shares exceeding 50% to another entity The Board, after deliberations, approved the proposal for transfer of shares exceeding 50% to another entity subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit 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. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (iii) Request of M/s. Cargill Business Services India Pvt. Ltd., a unit in DLF Cyber City Developers Ltd. IT/ITES SEZ at Gurgaon (Haryana) for transfer of shares exceeding 50% to another entity. The Board, after deliberations, approved the proposal for transfer of shares exceeding 50% to another entity subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit 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. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (iv) Request of M/s. R. B. Industries, a unit in Kandla SEZ for change in partnership deed and shareholding pattern The Board, after deliberations, approved the proposal for change in partnership deed and shareholding pattern subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit 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. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (v) Request of M/S. Regent Ropes, a unit in Kandla SEZ for change in partnership deed and shareholding pattern The Board, after deliberations, approved the proposal for change in partnership deed and shareholding pattern entity subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit 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. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (vi) Request of M/s. Aksasia Creations Pvt. Ltd., a unit in Noida SEZ, for transfer of shares exceeding 50% to another entity. The Board, after deliberations, approved the proposal for transfer of shares exceeding 50% to another entity subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit 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. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (vii) Request of M/s. Aries International, a unit in Kandla SEZ for change in partnership deed and shareholding pattern The Board, after deliberations, approved the proposal for change in partnership deed and shareholding pattern subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit 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. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (viii) Request of M/s. Prasar Enterprises, a unit in Kandla SEZ for change in partnership deed and shareholding pattern The Board, after deliberations, approved the proposal for change in partnership deed and shareholding pattern subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit 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. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (ix) Request of M/s. Hewlett Packard Private Limited, a unit in TRIL SEZ, Chennai for change of name to M/s. EIT Service India Private Ltd. After deliberations, the Board approved the proposal for change of name from M/s. Hewlett Packard Global Soft Private Ltd. to M/s. EIT Service India Private Ltd. subject to following conditions:- (i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; (ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit 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. (vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. (viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (x) Request of M/s Cargill Business Services India Pvt. Ltd. a unit in M/s Primal Projects Private Ltd. SEZ for transfer of shares exceeding 50% to another entity. The Board, after deliberations, approved the proposal for transfer of shares exceeding 50% to another entity subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit 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. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. Item No. 78.5 : Miscellaneous Cases (8 proposals) (i) Request of M/s. ZF Wind Power Coimbatore Pvt. Ltd. a unit in M/s. Aspen Infrastructures Ltd., SEZ, Coimbatore for approval of the BoA for undertaking repair/re-engineering etc., of gear box units manufactured by DTA units The Board, after deliberations, observed that the proposal amounted to providing engineering, repairing services relating to third party Gear boxes for the DTA entities. It amounted to having a full-fledged engineering, repairing services unit. It was observed that if the unit wants to have a full-fledged service unit, they may apply for a separate unit for engineering, repairing services so that accounts are not mixed and NFE criteria is separately complied with by the new services unit. (ii) Requests of M/S. Anita Exports, a unit in KASEZ for renewal of LoA for extension of recycling of plastic waste and scrap. The Board, after deliberations, rejected the proposal. (iii) Request of M/s Adani Power Limited., a Co-Developer in Adani Ports and Special Economic Zone(APSEZ), Mundra for transfer of its Mundra Power Plant to its subsidiary Adani Power(Mundra) Limited. The Board, after deliberations, decided to defer the proposal and directed DC APSEZ to ascertain whether NOC of lenders had been taken as it was noted that the proposed transfer of the thermal power plant in APSEZ, Mundra with M/s. Adani Power Limited to its subsidiary was being done without transfer of liability of debt. (iv) Transfer of ownership of M/S eBay India Pvt. Ltd. a unit in Primal Project Pvt. Ltd. SEZ, Bangalore to M/S ES Online Services India Pvt. Ltd. under Rule 19 of SEZ Rules, 2006 It was pointed out that the case should be examined from the point of view of Rule 74A of SEZ Rules regarding transfer of assets by SEZ units upon their exit. However, it was clarified that BoA in its 69th meeting held on 23.2.2016 had observed that provisions of Rule 74A shall not apply to SEZ units that do not exit or opt out of SEZ scheme by transferring its assets and liabilities to another person and the SEZ unit continues to operate as a going concern as a result of change of name, court approved merger/demerger, slump sale, etc, and such requests may be considered by UAC. In cases of Business Transfer Agreement resulting in transfer of the SEZ units on a going concern basis to the acquirer, the proposal will be decided on merits by the BoA on a case to case basis. It was further clarified that the present proposal is for transfer of assets and liabilities of the SEZ units based on a Business Transfer Agreement wherein the software development business of ebay India (including the SEZ units) would be transferred to ES Online (a new Indian entity set up by the eBay group) on going concern basis under a slump sale arrangement along with all the assets and liabilities related to the SEZ unit. Therefore, the proposal is covered by the BoA decision. Therefore, the Board, after deliberations, decided to approve the proposal. ( v) Request of M/s. T V Holdings Private Limited co-developer in the sector specific SEZ for IT/ITES at Vallancherry village, Guduvanchery, Chengalpattu TK, Kancheepuram District, Tamil Nadu, being developed by M/S. Estancia IT Park Limited for surrender of SEZ area to an extent of 1.71 hectares The Board, after deliberations, approved the proposal of M/s. T V Holdings Private Limited for surrender of SEZ area to an extent of 1.71 hectares, and to retain 3.56 hectares of land to develop infrastructural facilities. (vi) Request of M/s. Jubilant Infrastructure Limited a sector specific SEZ for Chemical at village vilayat, Taluka Vagra, District Bharuch, Gujarat, for addition of area of 18.55900 hectares. The Board, after deliberations, approved the request of M/s. Jubilant Infrastructure Limited for increase in area of 18.55900 hectares, increasing the total area of the SEZ to 125.724000 hectares, subject to contiguity of the land in the SEZ being maintained. (vii) Appeal of M/s. Zoho Corporation Pvt. Ltd, a unit in MEPZ against order dated 18.01.2017 passed by UAC, MEPZ. The Board took note of the minutes of the 75th meeting of BoA held on 8.03.2017 on the above subject and reiterated its decision allowing the appeal of M/s Zoho Corporation dated 4.2.2017. (viii) Request of Medium Irrigation Project Division, Govt. of Gujarat, Ankleshwar for the permission of allotment of 2500 (approx) sq. mts. of land in Non processing area (Port Area) at Dahej SEZ, Dist. Bharuch for boat berthing for Narmada parikarma pilgrims. The Board after deliberations decided to approve the proposal subject to the condition that the SEZ land (access land as well as land for proposed boat berthing facility) to be used for the purpose may be de-notified. Item No. 78.6 : Cancellation of Formal Approval In terms of Rule 6(2)(a) of SEZ Rules , Formal Approval is valid for a period of three years by which time at least one unit has to commence production and the SEZ becomes operational from the date of commencement of such production. Proviso to this rule provides for extension of this Formal Approval by Board of Approval, for which the Developer will submit his application in Form C1 to the concerned DC, who shall, within 15 days forward it to the Board with his recommendations. The Board after deliberations decided to cancel all those Letters of Approval, validity of which had expired and the developer had not approached the Board for further extension. The State Government concerned may also be informed for recovery of any exemption availed of from the State Government on the basis of the formal approval Item no. 78.7 Appeals before BoA (3 Appeals). (i) Appeal of M/s. Steria (India) Limited, a unit in NSEZ against order dated 25.05.2017 passed by UAC, NSEZ. The Board, after hearing the appellant considered the appeal favorably for allowing the merger of the three units subject to the condition that Income Tax benefits would be available only with reference to the oldest unit. Since there is no provision in the SEZ Rules 2006 for such merger, it was recommended that the approval of Hon'ble CIM may be obtained. The Board also recommended that the SEZ Rules may be looked into comprehensively and necessary amendments may be carried out. (ii) Appeal of M/s. Onnsynex Ventures Private Limited, a unit in NSEZ against order dated 23.05.2017 passed by UAC, NSEZ The Board, after hearing the appellant allowed the appeal excluding warehousing of liquor and precious/semi precious metals. The Board also directed that the entrepreneur shall set up separate units for trading and warehousing. (iii) Appeal of M/s. Sujan Oil Gas Infra Logistics, a unit in KASEZ against order dated 11.04.2017 passed by UAC, KASEZ The Board, after hearing the appellant decided to endorse the decision of the UAC as import of fertilizers is allowed only through State Trading Enterprises. Annexure - I List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 3rd July May, 2017 under the Chairpersonship of Commerce Secretary, Department of Commerce. 1. Ms. Rita Teaotia, Chairpersonship, BoA Commerce Secretary, Department of Commerce 2. Shri Alok Vardhan Chaturvedi, Additional Secretary, Department of Commerce 3. Shri J.V. Patil, Additional, DGFT 4. Dr. Prem Verma, Additional DG, DGEP, Department of Revenue, Ministry of Finance 5. Shri Sanjay Bansal, Additional Director General, DGEP 6. Smt. Deepshikha Sharma, Director, CBDT, Department of Revenue, Ministry of Finance 7. Shri Saroj Kumar Behera, Joint Director, DGEP, BEC 8. Shri A.K. Mishra, Research Assistant TCPO, Ministry of Urban Development, Vikas Bhawan, I.P. Estate, New Delhi 9. Shri K. Biswal, JS LC, Legislative Department, M/o. Law Justices 10. Shri H.S. Bisht, Director, O/o DC (MSME), Nirman Bhawan, New Delhi 11. Shri P. Bali, Co (Ports) Ministry of Shipping 12. Dr. Krishna Kanth Pulichula, Scientist-C, TDT Division, Dept. of Science Technology, Technology Bhawan, New Delhi. 13. Shri R.K. Gupta, CGM, RIICO, Government of Rajasthan, Jaipur 14. Shri Gurpreet Singh, Manager, PSIEC, Chandigarh. 15. Dr. Rakesh. A.R., Town and country, Planning Organization, M/o Urban Development, Govt. of India. 16. Shri Ashok Sangwan, Director Special Secretary Industries Commerce, Haryana. LIST OF DEVELOPMENT COMMISSIONERS 17. Dr. L.B. Singhal, Development Commissioner, Noida SEZ 18. Shri N.P.S. Monga, Development Commissioner, SEEPZ-SEZ 19. Dr. Safeena AN, Development Commissioner, CSEZ 20. Shri Upendra Vashisht, Development Commissioner, KASEZ 21. Ms. Sobhana K.S. Rao, Development Commissioner, VSEZ 22. Shri R.P. Goyal, Development Commissioner, AP SEZ/Mundra 23. S.K. Sharma, Development Commissioner, Mihan SEZ Nagpur 24. Smt. Lata Shukla, Development Commissioner, Navi Mumbai SEZ 25. Shri K.L. Sharma, Development Commissioner, Surat SEZ 26. Shri A.K. Singh, Development Commissioner, Mangalore SEZ 27. Shri D. Anandan, Joint Development Commissioner, MEPZ-SEZ 28. Shri Ishwar Singh, Joint Development Commissioner, Indore SEZ 29. Dr. Sriramappa. V, Joint Development Commissioner, Falta SEZ LIST OF PARTICIPANTS FROM DEPARTMENT OF COMMERCE 30. Shri G. Srinivasan, Under Secretary, Department of Commerce 31. Shri Aditya Narayan, Under Secretary, Department of Commerce 32. Shri K.C. Biswal, Section Officer, Department of Commerce