Minutes of the 119th meeting of the Board of Approval for SEZs held on 06th March, 2024 at Vanijya Bhawan, New Delhi - SEZ - Minutes of the 119th meeting of the SEZ

Minutes of the 119 th meeting of the Board of Approval for SEZs held on 06 th March, 2024 at Vanijya Bhawan, New Delhi The One Hundred and Nineteenth (119th) meeting of the Board of Approval (BoA) for Special Economic Zones (SEZs) was held on 06th March, 2024 under the chairmanship of Shri Sunil Barthwal, Secretary, Department of Commerce at Vanijya Bhawan, New Delhi through hybrid mode. The list of participants is at Annexure-I. 119.1: Ratification of the minutes of the 118th meeting of the Board of Approval held on 06th February, 2024. The Board ratified the minutes of the 118th meeting of the BoA for SEZs held on 06th February, 2024. 119.2: Request for extension of validity of formal approval of Developer (2 proposals) 119.2(i) Request of M/s. Venkatesh Coke Power Ltd. for extension of the validity period of formal approval granted for setting up of an FTWZ at Athipattu, Nandiambakkam and Puludivakkam Villages, Ponneri, Thiruvalur District, Tamil Nadu. The Board, after deliberations, approved extension of the validity of formal approval for one year upto 02.10.2024. 119.2(ii) Request of M/S. G.P. Realtors Pvt. Ltd. for extension of the validity of formal approval granted for setting up of Electronic Hardware IT/ITES SEZ at Village Behrampur, Balola Bandhwari, Distt- Gurugram (Haryana). The Board has observed that comments from Department of Industries Commerce, Government of Haryana is awaited in the matter. In this regard, Department of Industries Commerce, Government of Haryana has informed the Board that they had sought comments from Town and Country Planning (TCP), Haryana and the same has not received yet by them. Once they receive comments from TCP, Haryana, they would provide their comments/approval in the matter. The Board, after deliberations, granted approval for extension of the validity of the formal approval for one more year and regularised the period from 25.01.2020 subject to the condition that the extension shall be valid subject to obtaining requisite approval from the Department of Industries Commerce, Government of Haryana. 119.3: Request for extension of LoA of Unit (1 proposal) 119.3(i) Request of M/s. Worldwide Safety Pvt. Ltd. (Unit-II), Plot No. 49/A, Apparel Park SEZ, Ahmedabad for Extension of LoA dated 06.11.2019 valid upto 05.11.2022. The Board noted that the Unit has not done any construction activity till date and also has not made any incremental investment since last extension. Accordingly, the Board, after deliberations, rejected the request of the Unit for extension of validity 119.4: Request for partial/full de-notification of SEZ (1 proposal) 119. 4(i) Request of M/s. Phoenix Spaces Private Limited, for partial de-notification of 2.84 Ha out of 3.46 Ha of their IT/ITES at sy. No. 286 and 287, Puppalguda Village, Rajendra Nagar Mandal, Ranga Reddy District, Telangana. The Board, after deliberations, approved the proposal. 119.5: Miscellaneous (6 cases) 119.5(i) Request of M/s. Wipro Limited for cancellation of LoA issued to them as Co-Developer of M/s. Mahindra World City SEZ, Chengalpattu District, Tamil Nadu. The Board, after deliberations, approved the proposal. 119.5(ii) Request of M/s. Oryx IT Society, Co-Developer in M/s. Phoenix Tech Zone Pvt. Ltd, SEZ for IT/ITES at Sy. No. 118-138 (P), Gachibowli Village, Serilingampally Mandal, Ranga Reddy District, Telangana for transfer of Formal Approval and Co-Developer status to M/s. Evermark IT Developers Pvt. Ltd. The Board, after deliberations, approved the proposal for transfer of Formal Approval and Co-Developer status from M/S. Oryx IT Society to M/s. Evermark IT Developers Pvt. Ltd. in M/s. Phoenix Tech Zone Pvt. Ltd. The proposed Co-Developer will be taking the existing bare shell on lease from the landowners for the purpose of sub-leasing to IT SEZ units and for the purpose of operations and maintenance, over 2 million sq.ft. of built-up area, in accordance with the Co-developer agreement dated 02.01.2024 entered into with the Developer subject to standard terms and conditions as per the SEZ Act and Rules. Further, the Assessing Officer will have the right to examine the taxability of the income by way of lease rentals/down payment/premium etc. for the purpose of assessment under the prevalent Income-tax Act, 1961 and Income-tax Rules, 1962 as amended from time to time. The lease period shall be in accordance with DoC's Instruction No. 98 dated 29th August, 2019. 119.5(iii) Request of M/s. Spectrum IT Society, Co-Developer for M/s. Phoenix Spaces Pvt. Ltd, SEZ for ITATES at Sy. No. 285 Kokapet Village, Rajendra Nagar Mandai, Ranga Reddy District, Telangana for transfer of Formal Approval and CoDeveloper status to M/s. Evermark IT Developers Pvt. Ltd. The Board, after deliberations, approved the proposal for transfer of Formal Approval and Co-Developer status from M/s. Spectrum IT Society to M/s. Evermark IT Developers Pvt. Ltd. in M/s. Phoenix Tech Zone Pvt. Ltd. The proposed Co-Developer will be taking the existing bare shell on lease from the landowners for the purpose of sub-leasing to IT SEZ units and for the purpose of operations and maintenance, over 1.178 million sq.ft. of built-up area, in accordance with the Co-developer agreement dated 02.01.2024 entered into with the Developer subject to standard terms and conditions as per the SEZ Act and Rules. Further, the Assessing Officer will have the right to examine the taxability of the income by way of lease rentals/down payment/premium etc. for the purpose of assessment under the prevalent Income-tax Act, 1961 and Income-tax Rules, 1962 as amended from time to time. The lease period shall be in accordance with DoC's Instruction No. 98 dated 29 th August, 2019. 119.5(iv) Request of M/s. Fortune IT Society, Co-Developer for M/s. Phoenix Spaces Pvt. Ltd, SEZ for IT/ITES at sy. No. 286 287, Kokapet Village, Rajendra Nagar Mandal, Ranga Reddy District, Telangana for transfer of Formal Approval and Co-Developer status to M/s. Evermark IT Developers Pvt. Ltd. The Board, after deliberations, approved the proposal for transfer of Formal Approval and Co-Developer status from M/s. Fortune IT Society to M/s. Evermark IT Developers Pvt. Ltd. in M/s. Phoenix Tech Zone Pvt. Ltd. The proposed Co-Developer will be taking the existing bare shell on lease from the landowners for the purpose of sub-leasing to IT SEZ units and for the purpose of operations and maintenance, over 0.433 million sq.ft. of built-up area, in accordance with the Co-developer agreement dated 02.01.2024 entered into with the Developer subject to standard terms and conditions as per the SEZ Act and Rules. Further, the Assessing Officer will have the right to examine the taxability of the income by way of lease rentals/down payment/premium etc. for the purpose of assessment under the prevalent Income-tax Act, 1961 and Income-tax Rules, 1962 as amended from time to time. The lease period shall be in accordance with DoC's Instruction No. 98 dated 29th August, 2019. 119.5(v) Cancellation of Formal Approval pertaining to M/s. Madhusheel Infra Projects Pvt. Ltd., SEZ for IT/ITES at sy. No. 229-232, Gaganpahad Village, Rajendra Nagar Mandai, Ranga Reddy District, Telangana. Department of Revenue has noted that cancellation of the formal approval can be done after adjudication proceedings in the matter are completed. Accordingly, the Board, after deliberations, decided to remand back the proposal to DC, VSEZ. 119.5(vi) Request of M/s. DLF Info Park (Pune) Ltd., Developer for decrease in area admeasuring 4.7498 Hectares at plot No. PL-2 (Non-Notified) (Vacant Land) from formal letter of approval. The Board, after deliberation, approved the proposal of M/s. DLF Info Park (Pune) Ltd. for decrease in area by 4.7498 hectares at plot No. PL-2 (Non-Notified) (Vacant Land) from formal letter of approval. 119.6: Appeal (5 cases) 119.6(i) Appeal filed by M/s. Plastic Processors Exporter Pvt. Ltd. against the Order dated 21.04.2023 issued by DDC, Noida SEZ regarding non-renewal of their LoA. The Board had heard the appellant in its 115th meeting held on 17.06.2023 and has also taken note of the report submitted by the Committee constituted as per directions of the Board in its 117 the meeting held on 17.11.2023 to examine all the aspects of M/s. Plastic Processors Exporter Pvt. Ltd. and other similarly placed Units. The Board, after deliberations, approved renewal of the LoA of the Unit for five years subject to the following conditions: - i. The Unit shall ensure necessary funding is arranged within 3 months of the date of approval of extension and construction commences immediately to ensure that commercial production commences within 24 months of the date of approval. ii. The Unit would ensure their first export orders within 18 months from date of renewal of LoA. No further request will be considered to extend this time limit of 18 months. iii. No DTA sales would be allowed during the period of this 5-year extension irrespective of fulfilling of NFE and other conditions. Thereafter, DTA sales may be allowed as per prevailing norms. iv. Exit of the Unit in terms of Rules 74 and Transfer of its Assets in terms of Rule 74A of the SEZ Rules, 2006 would not be allowed during the period of this 5-year extension. v. Environment Clearance and other statutory clearances, if required, would be obtained by the Unit. vi. The Unit will provide a clear roadmap and the UAC, NSEZ would examine the performance of the Unit after every six months period. vii. These conditions are over and above the extant conditions of NFE requirements under rule 53 of SEZ Rules. 119.6(ii) Appeal filed by M/s. MNR Exports Private Limited against the Order dated 06.09.2023 issued by DC, Falta SEZ. The Board heard the appellant and after deliberations, agreed to the prayer of the appellant and remanded the appeal back to DC, Falta SEZ with direction to give them opportunity of being heard and decide the case on merit. 119.6(iii) Appeal filed by M/s. MGA Associates, Unit-Il against the Order dated 13.11.2023 issued by DC, KASEZ withdrawing the permissions for warehousing of Arecanut/Betelnut and Pepper. 119.6(iv) Appeal filed by M/s. Varsur Impex Pvt. Ltd. against the Order dated 09.11.2023 issued by DC, KASEZ withdrawing the permissions for warehousing of Arecanut/Betelnut and Pepper. 119.6(v) Appeal filed by M/s. Shriji Overseas against the Order dated 09.11.2023 issued by DC, KASEZ withdrawing the permissions for warehousing of Arecanut/Betelnut and Pepper. The Board heard the representative of the appellants in the above three cases [item No. 119.6(iii) to (v)]. The Board observed that there is vitiation of the proceedings in issuing Order and withdrawing the permissions by DC, KASEZ. The Board, after deliberations, agreed to the prayer of the appellants and remanded the appeals back to DC, KASEZ with direction to give these Units opportunity of being heard and thereafter, to decide on merits. 119.7: Request for conversion of processing area into non-processing area under Rule 11(B) (9 proposals) 119.7(i) Request of M/s. DLF Limited, New Town, Rajarhat, Kolkata for demarcation of a portion of SEZ Processing Built-up area to a Non-Processing Area in terms of Rule 11B of SEZ Rules, 2006. The Board has observed the followings: - i. The Developer has refunded an amount of Rs. 1,70,88,439/- (Rupees one Crore forty-seventy lakh eighty eight thousand four thirty nine only) towards the duty/tax exemption availed for the entire building including common infrastructure and the Specified Officer has issued No Dues Certificate on 20.02.2024. ii. The Developer has confirmed that while assessing the tax liability all social and common infrastructure facilities built up in the processing and proposed non-processing area and they have refunded the entire amount and submitted No Dues Certificate from the Specified Officer. iii. The Developer has submitted an Undertaking that they shall remit any differential duty / tax benefits which might have been short-paid, if it so determined at a later date and also comply with the provisions of Rule 11B. Accordingly, the Board has approved the request of M/s. DLF Limited, New Town, Rajarhat, Kolkata, for demarcation of SEZ Processing Built-up area (11977 sq.mtr.) as Non-Processing Area in terms of Rule 11B of SEZ Rules, 2006. 119.7(ii) Request of M/s. Modern Asset, Developer, for demarcation of SEZ Processing Built-up area (54781.63 sq.mtr.) as Non-Processing Area in terms of Rule 11B of SEZ Rules, 2006. The Board has observed the followings: - i. The Developer has refunded an amount of Rs.12,47,77,730/- (Rupees Twelve Crore forty-seven lakh seventy-seven thousand seven hundred thirty only) towards the duty/tax exemption availed for the area proposed to be demarcated and the common facilities and the Specified Officer has issued No Dues Certificate on 19.02.2024. ii. The Developer has confirmed that while assessing the tax liability all social and common infrastructure facilities built up in the processing and proposed non-processing area and they have refunded the entire amount and submitted No Dues Certificate from the Specified Officer. iii. The Developer has submitted an Undertaking that they shall remit any differential duty / tax benefits which might have been short-paid, if it so determined at a later date and also comply with the provisions of Rule 11B. Accordingly, the Board has approved the request of M/s. Modern Asset, Developer, for demarcation of SEZ Processing Built-up area (54781.63 sq.mtr.) as Non-Processing Area in terms of Rule 11B of SEZ Rules, 2006. 119.7(iii) Request of M/s. Manyata Promoters Private Limited, Developer, for demarcation of SEZ Processing Built-up area (56,461.91 sq.mtr.) as Non-Processing Area in terms of Rule 11B of SEZ Rules, 2006. 119.7(iv) Request of M/s. Shyamaraju Company (India) Private Limited, Developer, for demarcation of SEZ Processing Built-up area (201654.29 sq.mtr.) as Non-Processing Area in terms of Rule 11B of SEZ Rules, 2006. 119.7(v) Request of M/s. Quadron Business Park Pvt. Ltd. for Demarcation of Built up Floors as Non-Processing Area (NPA) of notified IT/ITES SEZ. 119.7(vi) Request of M/s. Embassy Pune Tech Zone Pvt. Ltd. for approval of Demarcation of Built up Floors as Non-Processing Area (NPA) of notified ITATES SEZ. 119.7(vii) Request of M/s. Synergy Infotech Pvt Ltd. (SEZ Co-Developer) in M/s. MIDC IT/ITES-SEZ for approval of Demarcation of Built up Floors as Non-Processing Area (NPA) of notified IT/ITES SEZ. 119.7(viii) Request of M/s. Magarpatta Township Development and Construction Company Ltd. SEZ for approval of Demarcation of Built up Floors as Non-Processing Area (NPA) of notified IT/ITES SEZ. The Board has observed that in the 118 th meeting of the BoA held on 06.02.2024, the Board had taken decision and approved the proposals for demarcation of Processing Area into Non-Processing Area under the Rule 11B of the SEZ Rules, 2006 subject to the following conditions: - i. Full repayment of the amount of proportionate Customs duty, Central Excise duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax and such other Central levies and repayment of tax benefits like drawback attributable to the area to be demarcated as NPA as stipulated under the Rule 11B. ii. Full repayment of the amount of Customs duty, Central Excise duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax and such other Central levies and repayment of tax benefits like drawback attributable to the common infrastructure area as stipulated under the Rule 11B. iii. Submission of an Undertaking that the Developer shall remit any differential duty / tax benefits which might have been short-paid, if it so determined at a later date and also comply with the provisions of Rule 11B. The Board noted that the aforesaid decision taken in the previous meeting of the board was taken in concurrence with DoR in anticipation of the principles for determination of payment of duty benefits will be laid down very fast. However, the Board has noted that concurrence of DoR in this regard is still awaited by DoC. Accordingly, the Board has requested DoR to immediately furnish their concurrence / comments, if any to DoC such that the principles for determination of payment of duty benefits are laid down and necessary instructions providing clarity in this regard are issued by Doc. The Board, after deliberation, deferred the proposals [from item No. 119.7(iii) to (viii)]. 119.7(ix) Request of M/s. KRC Infrastructure and Project Pvt. Ltd. and M/s. Gera Holdings Pvt. Ltd. for approval of Demarcation of Built up Floors as Non-Processing Area (NPA) of notified IT/ITES SEZ. The Board has observed the followings: - i. The Developer has refunded all the exemption and benefits availed for construction of the building to the tune of Rs. 44.66 Crores after due assessment by the Specified Officer of their zone. No dues Certificate has been issued by the Specified Officer. ii. The Developer has also stated that they have refunded entire exemption and benefits for the entire building which includes the exemption and benefits availed for common infrastructure like parking, lobby, Staircases and elevators etc. iii. The Developer has submitted an Undertaking that they shall remit any differential duty / tax benefits which might have been short-paid, if it so determined at a later date and also comply with the provisions of Rule 11B. Accordingly, the Board has approved the request of M/s. KRC Infrastructure and Project Pvt. Ltd. and M/s. Gera Holdings Pvt. Ltd. for demarcation of SEZ Processing Builtup area (34,579.70 sq.mtr.) as Non-Processing Area in terms of Rule 11B of SEZ Rules, 2006. Decision of Supplementary Agenda: 119.8: Request for extension of validity of formal approval of Developer (1 proposal) 119.8(i) Request of M/s. Embassy Property Developments Private Limited, Bangalore for extension of validity of Formal Approval, granted for setting up of Sector specific SEZ for Information Technology and Information Technology Enabled Services (IT/ITES) at Outer Ring Road, Rachenahalli Village, Bangalore, Karnataka State, beyond 01.03.2024. The Board, after deliberations, approved extension of the validity of formal approval for one year upto 01.03.2025. 119.9: Request for conversion of processing area into non-processing area under Rule 11(B) (6 proposals) 119.9(i) Request of M/s. Qubix Business Park Pvt. Ltd. for approval of Demarcation of Built up Floors as Non-Processing Area (NPA) of notified ITATES SEZ. 119.9(ii) Request of M/s. NSL SEZ (Hyderabad) Pvt. Ltd, Developer, IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Telangana for demarcation of their SEZ under Rule 11B of SEZ (Fifth Amendment) Rules, 2023. 119.9(iii) Request of M/S. DLF Info City Hyderabad Ltd., Developer, IT/ITES SEZ at Gachibowli Village, Serilingampally Mandal, Ranga Reddy District, Telangana for demarcation of their SEZ under Rule 11B of SEZ (Fifth Amendment) Rules, 2023. The Board has observed that in the 118th meeting of the BoA held on 06.02.2024, the Board had taken decision and approved the proposals for demarcation of Processing Area into Non-Processing Area under the Rule 11B of the SEZ Rules, 2006 subject to the following conditions: - i. Full repayment of the amount of proportionate Customs duty, Central Excise duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax and such other Central levies and repayment of tax benefits like drawback attributable to the area to be demarcated as NPA as stipulated under the Rule 11B. ii. Full repayment of the amount of Customs duty, Central Excise duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax and such other Central levies and repayment of tax benefits like drawback attributable to the common infrastructure area as stipulated under the Rule 11B. iii. Submission of an Undertaking that the Developer shall remit any differential duty / tax benefits which might have been short-paid, if it so determined at a later date and also comply with the provisions of Rule 11B. The Board noted that the aforesaid decision taken in the previous meeting of the board was taken in concurrence with DoR in anticipation of the principles for determination of payment of duty benefits will be laid down very fast. However, the Board has noted that concurrence of DoR in this regard is still awaited by DoC. Accordingly, the Board has requested DoR to immediately furnish their concurrence / comments, if any to DoC such that the principles for determination of payment of duty benefits are laid down and necessary instructions providing clarity in this regard are issued by Doc. The Board, after deliberation, deferred the proposals [item No. 119.9(i) to (iii)]. 119.9(iv) M/s. Oxygen Business Park Private Limited, developer of IT/ITES SEZ at Plot No. 7, Sector-144, Noida (Uttar Pradesh) Proposal for demarcation of a portion of built-up area in SEZ as Non-Processing Area under Rule 11B of SEZ Rules, 2006. The Board has observed the followings: - i. The Specified Officer vide his letter No. SEZ/Oxygen/Dev.07/2015/05 dated 24.01.2023 had issued 'No Dues' in respect of proposed part de-notification of SEZ stating that the duty exemption amounting to Rs.38,98.88,549/- availed by the developer in development of the said area and construction of the said Tower-I has been paid. ii. The Developer has also stated that they have refunded entire exemption and benefits for the entire building which includes the exemption and benefits availed for common infrastructure like parking, lobby, Staircases and elevators etc. iii. The Developer has submitted an Undertaking that they shall remit any differential duty / tax benefits which might have been short-paid, if it so determined at a later date and also comply with the provisions of Rule 11B. Accordingly, has approved the request of M/s. Oxygen Business Park Private Limited for demarcation of partial built up area of 88325.50 sq.mt. in respect of Tower 1, (including Basement, Stilt floor + 13 floors + Terrace), as Non-Processing Area, in terms of Rule 11B of SEZ Rules, 2006. 119.9(v) Request of M/s. Arliga Ecoworld Infrastructure Pvt. Ltd. (formerly M/S. RMZ Ecoworld Infrastructure Pvt. Ltd.), Developer, for demarcation of SEZ Processing built-up area (38253.26 sq.mtr.) as Non-Processing Area in terms of Rule 11B of Rules, 2006. 119.9(vi) Request of M/s. Infoparks Kerala, Co-Developer of Kerala State IT Infrastructure Limited for demarcation of SEZ Processing built-up area (5574 sq.mtr.) as Non-Processing Area in terms of Rule 11B of SEZ Rules, 2006. The Board has observed that in the 118th meeting of the BoA held on 06.02.2024, the Board had taken decision and approved the proposals for demarcation of Processing Area into Non-Processing Area under the Rule 11B of the SEZ Rules, 2006 subject to the following conditions: - i. Full repayment of the amount of proportionate Customs duty, Central Excise duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax and such other Central levies and repayment of tax benefits like drawback attributable to the area to be demarcated as NPA as stipulated under the Rule 11B. ii. Full repayment of the amount of Customs duty, Central Excise duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax and such other Central levies and repayment of tax benefits like drawback attributable to the common infrastructure area as stipulated under the Rule 11B. iii. Submission of an Undertaking that the Developer shall remit any differential duty / tax benefits which might have been short-paid, if it so determined at a later date and also comply with the provisions of Rule 11B. The Board noted that the aforesaid decision taken in the previous meeting of the board was taken in concurrence with DoR in anticipation of the principles for determination of payment of duty benefits will be laid down very fast. However, the Board has noted that concurrence of DoR in this regard is still awaited by DoC. Accordingly, the Board has requested DoR to immediately furnish their concurrence / comments, if any to DoC such that the principles for determination of payment of duty benefits are laid down and necessary instructions providing clarity in this regard are issued by Doc. The Board, after deliberation, deferred the proposals [item No. 119.9(v) to (vi)]. 119.10: Appeal (1 case) 119.10(i) Appeal filed by M/s. Margo Impex Private Limited against the decision of UAC, NSEZ dated 04.01.2024. heard the appellant and observed that there is vitiation of the proceedings in issuing Order and withdrawing the permissions by DC, NSEZ. The Board, after deliberations, agreed to the prayer of the appellant and remanded the appeal back to DC, NSEZ with direction to grant the Unit an opportunity of being heard and thereafter, decide the case on merit. Decision on Supplementary Agenda II: 119.11: Request for extension of validity of formal approval of Developer (1 proposal) 119.11(i) Request of M/s. Nagaland Industrial Development Corporation Ltd SEZ for further extension of the validity period of formal approval, granted for setting up of Sector Specific SEZ for Agro Food Processing at Ganeshnagar, Dimapur, Nagaland beyond 02.12.2023. The Board, after deliberations, approved extension of the validity of formal approval for one year i.e., upto 02.12.2024. 119.12: Request for Co-developer status (2 proposals) 119.12(i) Request of M/s. GGG Developers LLP for grant of co-developer status in the IT/ITES SEZ of M/s. Artha Infratech Pvt. Ltd. located at Plot No. 21, Sector Techzone IV, Greater Noida, Uttar Pradesh The Board, after deliberations, approved the proposal of M/s. GGG Developers LLP for Co-developer status in M/s. Artha Infratech Pvt. Ltd. for Conversion from warm shell to total ready to move in infrastructure and renovation of existing furniture fit outs including maintaining and managing facility management on One floor (13 th floor) of Tower No.l of approx. 341 13 sq.ft. Super area of SEZ, in accordance with the Co-developer agreement dated 22.1 1.2023 entered into with the Developer subject to standard terms and conditions as per the SEZ Act and Rules. Further, the Assessing Officer will have the right to examine the taxability of the income by way of lease rentals/down payment/premium etc. for the purpose of assessment under the prevalent Income-tax Act, 1961 and Income-tax Rules, 1962 as amended from time to time. The lease period shall be in accordance with DoC's Instruction No. 98 dated 29th August, 2019. 119.12(ii) Request of M/s. Shivalik SEZ Projects LLP, Ahmedabad for approval as Co-Developer within the processing Area in GIFT-Multi Services SEZ at Ratanpur, District Gandhinagar, Gujarat, developed by M/s. GIFT SEZ Limited. The Board has observed some deficiencies in the proposal and after deliberations, deferred the proposal with directions to DC, KASEZ/GIFT SEZ to seek details from the applicant viz. their plan with regard to financial closure, arrangement of money, funding of the project, break-up of equity to debt etc. 119.13: Request for increase in area by Co-developer (1 proposal) 119.13(i) Request of M/s. Venus Green Build LLP, GIFT-SEZ, Gandhinagar for addition of space in the approval as a Co-Developer within th processing Area of GIFT-Multi Services SEZ at Ratanpur, District Gandhinagar, Gujarat, developed by M/s. GIFT SEZ Limited. The Board, after deliberations, approved the proposal of M/s. Venus Green Build LLP for increase in built-up area of (i) 3,80,000 square feet to 4,08,772 square feet (addition of 28,772 square feet area) due increase in development rights; ii) addition of 262 square meters of basement extent, i.e. increase from 3474 square meters to 3736 square meters; iii) additional appurtenant land below grade level beyond basement extent 232 square meters, additional area, in accordance with the Co-developer agreement dated 02.03.2023 entered into with the Developer subject to standard terms and conditions as per the SEZ Act and Rules. Further, the Assessing Officer will have the right to examine the taxability of the income by way of lease rentals/down payment/premium etc. for the purpose of assessment under the prevalent Income-tax Act, 1961 and Income-tax Rules, 1962 as amended from time to time. The lease period shall be in accordance with DoC's Instruction No. 98 dated 29th August, 2019. Furthermore, the area restrictions for duty paid shall be as per the Rule 11A(3)(c) of the SEZ Rules, 2006. The other conditions of the LoA shall remain the same. 119.14: Request for approval of 'Restricted' item (1 proposal) 119.14(i) Proposal of M/s. ASF Insignia SEZ Private Limited, Developer for approval of 'Restricted' item to carry on authorized operations in the IT/ITES SEZ at Village Gwal Pahari, Gurugram (Haryana). The Board has observed that DOR requires some clarifications in the matter. Accordingly, the Board, after deliberations, deferred the proposal. 119.15: Appeal (2 cases) 119.15(i) Appeal filed by M/s. Arshiya 3PL Services Private Limited against the decision of UAC, NSEZ dated 04.01.2024. 119.15(ii) Appeal filed by M/s. Srikaram Prescience Private Limited against the decision of UAC, NSEZ dated 04.01.2024. The Board heard the appellant and observed that there is vitiation of the proceedings in issuing Order and withdrawing the permissions by DC, NSEZ. The Board, after deliberations, agreed to the prayer of the appellants and remanded the appeals [item No. 119.15(i) to (ii)] back to DC, NSEZ with direction to grant them an opportunity of being heard and thereafter, decide the case on merits. 119.16: Request for conversion of processing area into non-processing area under Rule 11(B) (7 proposals) 119.16(i) Request of M/s. Infopark Properties Limited, Developer, for demarcation of SEZ Processing Built-up area (38,007.61 sq.mtr.) as Non-Processing Area in terms of Rule 11B of SEZ (Fifth Amendment) Rules, 2023. 119.16(ii) Request of M/s. DLF Info City Chennai Limited, Developer, for demarcation of SEZ Processing Built-up area (32,907 sq.mtr.) as Non-Processing Area in terms of Rule 11B of SEZ Rules, 2023 . 119.16(iii) Request of M/s. Candor Gurgaon One Realty Projects Private Limited, developer of IT/ITES SEZ at Village Tikri, Gurugram (Haryana) Proposal for demarcation of a portion of built-up processing area in SEZ as Non-Processing Area under Rule 11B of SEZ Rules, 2006. 119.16(iv) Request of M/s. Grand Canyon SEZ Private Limited, Co-developer in ASF Insignia SEZ Pvt. Ltd. ITA TES SEZ at Village GwalPahari, Gurugram (Haryana) for demarcation of a portion of built-up Processing Area into Non-Processing Area under Rule 11B of SEZ Rules, 2006. 119.16(v) Request of M/s. Kings Canyon SEZ Private Limited, Co-developer in ASF Insignia SEZ Pvt. Ltd. ITATES SEZ at Village GwalPahari, Gurugram (Haryana )-Proposal for demarcation of a portion of built-up Processing Area into Non-Processing Area under Rule 11B of SEZ Rules, 2006. 119.16(vi) Request of M/s. Gigaplex Estate Pvt. Ltd. for Demarcation of Built up Floors as Non-Processing Area of a notified ITATES SEZ. 119.16(vii) Request of M/s. Mindspace Business Parks Private Limited for Demarcation of Built up Floors as Non-Processing Area of a notified IT/ITES SEZ. The Board has observed that in the 118 th meeting of the BoA held on 06.02.2024, the Board had taken decision and approved the proposals for demarcation of Processing Area into Non-Processing Area under the Rule 11B of the SEZ Rules, 2006 subject to the following conditions: - i. Full repayment of the amount of proportionate Customs duty, Central Excise duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax and such other Central levies and repayment of tax benefits like drawback attributable to the area to be demarcated as NPA as stipulated under the Rule 11B. ii. Full repayment of the amount of Customs duty, Central Excise duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax and such other Central levies and repayment of tax benefits like drawback attributable to the common infrastructure area as stipulated under the Rule 11B. iii. Submission of an Undertaking that the Developer shall remit any differential duty tax benefits which might have been short-paid, if it so determined at a later date and also comply with the provisions of Rule 11B. The Board noted that the aforesaid decision taken in the previous meeting of the board was taken in concurrence with DoR in anticipation of the principles for determination of payment of duty benefits will be laid down very fast. However, the Board has noted that concurrence of DoR in this regard is still awaited by DoC. Accordingly, the Board has requested DoR to immediately furnish their concurrence / comments, if any to DoC such that the principles for determination of payment of duty benefits are laid down and necessary instructions providing clarity in this regard are issued by DoC. The Board, after deliberation, deferred the proposals [item No. 119.16(i) to (vii)]. 119.17: Request for conversion of wing wise floor processing area into non-processing area under Rule 11(B) (4 proposals) 119.17(i) Request of M/s. EON Kharadi Infrastructure Pvt. Ltd., Phase I for approval of Demarcation of Built up Floors as Non-Processing Area (NPA) of notified IT/ITES SEZ. 119.17(ii) Request of M/s. Midas Projects Pvt. Ltd, Co-Developer for M/s. Divyasree NSL Infrastructure Pvt. Ltd, IT/ITES SEZ at Raidurg Village, Serilingampally Mandai, Ranga Reddy District, Telangana for demarcation of their SEZ under Rule 11B of SEZ (Fifth Amendment) Rules, 2023. 119.17(iii) Request of M/s. Divyasree NSL Infrastructure Pvt. Ltd, Developer, IT/ITES SEZ at Sy. No. 66/1, Raidurga Village, Serilingampally Mandai, Ranga Reddy District, Telangana for demarcation of their SEZ under Rule 11B of SEZ (Fifth Amendment) Rules, 2023 119.17(iv) Request of M/s. Divyasree Tech Park Contractors Pvt. Ltd, Co-Developer for M/s. Lanco Hills Techn010kY Park Pvt. Ltd, IT/ITES SEZ at Manikonda Village, Rajendra Nagar Mandai, Ranga Reddy District, Telangana for demarcation of their SEZ under Rule 11B of SEZ (Fifth Amendment) Rules, 2023 The Board has observed that in the 118th meeting of the BoA held on 06.02.2024, the Board had taken decision and approved the proposals for demarcation of Processing Area into Non-Processing Area under the Rule 11B of the SEZ Rules, 2006 subject to the following conditions: - i. Full repayment of the amount of proportionate Customs duty, Central Excise duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax and such other Central levies and repayment of tax benefits like drawback attributable to the area to be demarcated as NPA as stipulated under the Rule 11B. ii. Full repayment of the amount of Customs duty, Central Excise duty, Central Goods and Services Tax, Integrated Goods and Services Tax and State Goods and Services Tax and such other Central levies and repayment of tax benefits like drawback attributable to the common infrastructure area as stipulated under the Rule 11B. iii. Submission of an Undertaking that the Developer shall remit any differential duty / tax benefits which might have been short-paid, if it so determined at a later date and also comply with the provisions of Rule 11B. The Board noted that the aforesaid decision taken in the previous meeting of the board was taken in concurrence with DoR in anticipation of the principles for determination of payment of duty benefits will be laid down very fast. However, the Board has noted that concurrence of DoR in this regard is still awaited by DoC. Accordingly, the Board has requested DoR to immediately furnish their concurrence / comments, if any to DoC such that the principles for determination of payment of duty benefits are laid down and necessary instructions providing clarity in this regard are issued by DoC. The Board, after deliberation, deferred the proposals [item No. 119.17(i) to (iv)]. Annexure-I List of Participants for the Meeting of the Board of Approval for Special Economic Zones held 06th March, 2024 at Vanijya Bhawan, New Delhi under the Chairmanship of Commerce Secretary, Department of Commerce: 1. Shri Sunil Barthwal, Commerce Secretary, Department of Commerce 2. Shri Santosh Kumar Sarangi, DG, DGFT 3. Shri L Satya Srinivas, Additional Secretary, Department of Commerce 4. Shri Vipul Bansal, Joint Secretary, Department of Commerce 5. Shri Senthil Nathan S, Director, Department of Commerce 6. Ms. Reshma Lakhani, Pr. DG, DGEP 7. Shri Ranjan Khanna, ADG, DGEP 8. Shri Roshan Lai, Addl. DG, DGEP 9. Smt. P Hemalatha, Development Commissioner, C-SEZ 10. Shri Bipin Menon, Development Commissioner, NSEZ 11. Shri. Rajesh Kumar Mishra, DC, SEEPZ-SEZ 12. Shri Dinesh Singh, Development Commissioner, KASEZ 13. Shri Alex Paul Menon, DC, MEPZ-SEZ 14. Smt. Shubhra Agarwal, DC, APSEZ 15. Shri V. Sraman, DC, Mihan SEZ 16. Smt. Roshni Aparanji Korati, JDC, Visakhapatnam SEZ 17. Shri S. V. Varma, Specified Officer, Visakhapatnam SEZ 18. Shri Praveen Kumar Tiwari, ALC, Legislative Department List of participants connected with Video Conferencing: 1. Shri D.B Singh, Development Commissioner, FSEZ 2. Shri Suvidh Shah, DC, Indore SEZ 3. Shri Vijay Kumar Development Commissioner, Dahej SEZ 4. Shri Abhimaniu Sharma , Development Commissioner, Surat SEZ, Gujarat 5. Shri Vikas Singh, Director, ITA-I, CBDT 6. Shri Manjusha Chourasia, Scientist E, Meity 7. Dr. Sandeep Kumar Raut, TCPO, Ministry of Housing Urban Affairs 8. Shri Anil Kant Mishra, Research Assistant TCPO, Ministry of Housing Urban Affairs 9. Dr. RJR Kasibhatla, Additional Legal Adviser, Ministry of Law and Justice 10. Assistant Director, Industries Commerce Department, Haryana