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TMI BlogMinutes 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 proposalsX X X X Extracts X X X X X X X X Extracts X X X X ..... etting up of SEZ in an existing Port at Nhava Sheva, JNPT Port, Taluka Uran, Navi Mumbai, for 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance in a space of (a) 1,28,594 sq. ft. in 9th and floor and (b) 1,22,619 sq. ft. in 12th Floor, Tower-8 of the SEZ and other activities as may be authorized by the SEZ authorities 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(iv) Request of M/s. Tata Consultancy 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Board, after deliberations, approved the proposal of M/s. ANSR Global Corporation Pvt. Ltd for development of the SEZ area specifically to undertake the authorized operations of conversion of bare shell buildings into warm shell buildings and to lease the built-up space in the SEZ in an area of 58868 sq. ft. (29,434 sq.ft. in 1st floor, Block-2 and 29,434 sq. ft. in 2nd Floor, block-2) 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. 90:5 Change of Shareholding Pattern/Change of name (Five proposals) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 co-developer shall furnish details of PAN and jurisdictional assessing officer of the co-developer to CBDT. 90.5(iii) Proposal of M/s. NIIT Technologies Limited developer of IT/ITES SEZ at Plot No. TZ-02 2A, Sector-Tec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty criteria applicable to developer, including security clearances etc., by the altered developer entity and its constituents; iii. Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv. Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. v. The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. vi. The applicant shall comply with relevant State 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 CB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other export obligations of 66.67% of total annual turnover with physical export obligation (by volume) of 50% as prescribed vide DoC's policy guidelines dated 13.02.2018 and other conditions as prescribed by the DoC from time to time. 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. 90.7 Miscellaneous Cases (Eight proposals) 90.7(i) Proposal of M/S. DLF Cyber City Developers Ltd., Developer of Cyber City IT/ITES SEZ for approval for passage of proposed Skywalk through the area of the SEZ at Sector-24 25A DLF Phase-m, Gurugram (Haryana). The Board noted that only 19 piers or columns of Skywalk will be located inside the SEZ boundary and the cost of constructing the sane would be borne by the developer. During the construction process, the corridor would be barricaded and no benefit of SEZ would be availed in the construction of skywalk. Post completion of construction work, one would be able to move below the sky ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liance Industries Ltd., SEZ (Developer) at Village-Meghpar/Padana, Tauka- Lalpur, Jamnagar for procurement of restricted items by SEZ developer for Infrastructure development repairing facility of existing infrastructure facilities in terms of Rule 27 of SEZ Rules, 2006. The Board, after deliberations decided to approve the proposal subject to the condition that DC, Reliance Jamnagar SEZ will ensure compliance of all other relevant conditions. 90.7(vi) Proposal of M/s. Orvi Design Studio for import / procurement of 'Mother of Pearl' as raw material in respect of its unit located in the Multi-Product SEZ of M/s. Mahindra World City (Jaipur) Ltd. at Village Kalwara, Jhai, Bhamboriya, Bagru Khurd Newta, Tehsil-Sananer, Distt- Jaipur (Rajasthan). The Board, after deliberations, decided to approve the proposal for import / procurement of 'Mother of Pearl' as raw material subject to the condition that DC, NSEZ will ensure compliance of all other relevant conditions. 90.7(vii) Proposal of M/s. M G Impex (India) Pvt. Ltd. for setting up of unit in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order has been passed ex-parte by the Approval Committee without providing reasonable opportunity of being heard. (b) The unit of the appellant is lying closed since December, 2016 and other two properties addresses of which are mentioned in the order have been auctioned by the Bank towards a loan liability possession and therefore the notices could not be received by them. (c) That the adverse decision has been taken against the appellant merely on the basis of allegations made by DRI in the Customs proceedings initiated by them. That the allegations made in the Show Cause Notice dated 09.06.2017 issued by the DRI are not sustainable and the same have neither been confirmed against the appellant till date. (d) That the appellant could not file APRs for the year 2016-17 and 2017-18 because the data/documents/records/electronic devices etc. were being taken over/seized /resumed by the DRI, though unit had requested DRI and the Adjudicating Authority for providing the same. (e) The appellant submitted that the statement tendered by the appellant before DRI unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at PET Plastic Scrap is always regarded as Environmental Friendly Non-polluted /nonhazardous/non-toxic items. (iii) That their proposal is for recycling of non-polluting/non-toxic/non-hazardous, Pet Bottle Scrap, therefore, it is out of the ambit of restriction of Rule 18(4) of the SEZ Rules. (iv) That their proposal is for 100% export of Pet Plastic granulation/recycled products and that no DTA sales are involved as such rejection of their proposal by UAC is inexplicable. They undertake to furnish affidavit to this effect which included their undertaking to abide by all applicable pollution/environmental law. The Board noted that as per the Hazardous and Other Wastes (Management Transboundary Movement) Amendment Rules, 2019, solid plastic waste has been prohibited from import into the country including in Special Economic Zones (SEZs) and by Export Oriented Units (EoUs) and hence the request of the unit under Rule 18(4) of SEZ Rules, 2006 for setting up of new unit for manufacturing of plastic pre-processed crushing/granules from Pet Bottles wastes was rejected by the Board. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) 90.12 (i) Request of M/s. NDR Infrastructure Pvt. Ltd. seeking in-principle a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Board, noted that as per the additional submissions of the appellant and during the personal hearing, the following contentions were made by the appellant; (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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (v) The Hon'ble High Court has specifically directed the BoA to consider the petitioner's contention that it had achieved positive NFE. The necessary documents submitted by the unit to DOC to establish their claim has been verified and it is found that cumulative NFE of the unit during 2012-13 and 2014-15 comes out to be negative by ₹ 9361.85 lakhs. The unit has itself 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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