TMI BlogMinutes of the 73rd meeting of the Board of Approval for SEZ held on 09th November 2016 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 ..... h November, 2016 The Board, after deliberations, extended the validity of the formal approval up-to 13th November, 2017. Item No. 73.2 : Requests for extension of LoP beyond 3rd Year onwards (i) Request of M/s. Benzo Chem Industries Pvt. Ltd., a unit in M/s. Dahej SEZ Limited, Gujarat for extension of LoP beyond 7th September, 2016 The Board, after deliberations, extended the validity of the LoP up to 7th September, 2017. (ii) Request of M/s. J.S. Designer Ltd., a unit in NSEZ for extension of LoP beyond 21st November 2014, The Board, after deliberations, condoned the delay and extended the validity of the LoP up to 21St November, 2017. ( iii) Request of M/s Sterling Biotech Ltd., a unit in Sterling SEZ at Bharuch, Gujarat for extension of validity period of its LoP beyond 30th September, 2016. The Board, after deliberations, extended the validity of the LoP up to 30 th September, 2017. (iv) Request of M/s. HAAAS Corporation Pvt. Ltd., a unit in MIHAN SEZ at Nagpur (MIHAN), District Nagpur, Maharashtra for extension of LoP beyond 14.09.2016 The Board, after deliberations, extended the validity of the LoP up to 14th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industrial Development Corporation. After deliberations, the Board approved the proposal of M/s. C.B. Global IT Park Infra Pvt. Ltd. as a Co Developer for construction of IT/ITES building to be undertaken in the notified area of SEZ admeasuring 5,827 Sq.mt. in the Sector Specific SEZ developed by Maharashtra Industrial Development Corporation (MIDC). The activities should be completed by March, 2018 as allowed by the developer Maharashtra Industrial Development Corporation (MIDC) (iv) Request of M/s. Arshiya Rail Siding and Infrastructure Limited for co-developer in the FTWZ at Village SAI, Taluka - Panvel, Maharashtra, being developed by M/s.. Arshiya Limited After deliberations, the Board approved. the proposal of M/s Arshiya Rail Siding and Infrastructure Limited is a. wholly owned subsidiary of Arshiya Ltd. which is focusing on infrastructure based logistic which includes development operation and maintenance of FTWZ.. Further, the company requested for the grant of co-developer status for operation and maintenance of six warehouses at Arshiya, Ltd. in accordance with the co-developer agreement entered into with the developer, subject to standard terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proposal for setting up of a sector specific Special Economic Zone for IT/ITES at Sy. No. 72, Village Khardi, Pune; over an area of 4.86 hectares with direction to DC SEEPZ SEZ to review the case (v) Request of M/s. GAR Corporation Private Limited for setting up of a sector specific SEZ for IT/ITES at Sy. No. 89 (P), Kokapet Village, Serilingampally Mandal, Telangana, over an area of 1.66 hectares. The Board, after deliberations, approved the proposal for setting. up of a sector specific Special Economic Zone for IT/ITES at Sy. No. 89 (P), t(okapet Village, Serilingampally Mandal, Telangana,. over an area of 1.66 hectares. (vi) Request of M/s. GAR Corporation Private Limited for setting up of a sector specific SEZ for IT/ITES at Sy. No. 21 (P), 22 (P), 23 and 24, Kokapet Village, Serilingampally Mandal, Telangana, over an area of 2.56 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for IT/ITES at Sy. No. 21. (P), 22 (P), 23 and 24, Kokapet Village, Serilingampally Mandal, Telangana, over an area of 2.56 hectares. (vii) Request of M/s. KRC Infrastructure and Projec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iance 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. (v) Request of M/s. Chordia Brothers, a unit at Plot No. F-20, SEZ-II, Sitapura, Jaipur for change of name of partners and shareholding of the firm. The Board, after deliberations, approved the proposal for change of partners and shareholding of the firm subject to follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. (vii) Request of M/s. DLF Utilities Ltd., a co-developer in the sector specific SEZ for IT/ITES at New Town, Rajarhat, Kolkata being developed by M/s. DLF Limited for transfer of Codeveloper LoA including all authorized operations, assets liabilities to M/s. DLF Power Services Ltd. The Board, after deliberations, approved the request for transfer of Co-developer LoA including all authorized operations, assets liabilities to M/s. DLF Power Services Ltd., subject to standard terms and conditions as per SEZ Act and Rules. (viii) Request of M/s. DLF Utilities Ltd., a co-developer in the sector specific SEZ for IT/ITES at Gachibowli village, Serilingampally Mandal, Ranga Reddy District, Telangana being developed by M/s. DLF Commercial Developers Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard after deliberations, approved the proposed additional authorized operations of the co-developer in the processing area with the condition that no 0 M benefits will be available for security services: (xiii) Request of M/s. Shriram Properties and Infrastructure Private Limited developer for sector specific SEZ for IT/ITES at Perungulathur, Chennai, for transfer of shareholding pattern of the company The Board, after deliberations, approved the request for transfer of shareholding pattern of the company, subject to following conditions:- (i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity; (ii) Fulfillment of all eligibility criteria applicable to developers, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T City Parks Ltd. to grant extension in timeline for construction of minimum built area in the IT/ITES at Plot No. TZ-06, Sector Tech Zone, Gr. Noida, Uttar Pradesh. The Board, after deliberations, observed that as per Rule 5(7) of SEZ Rules, 2006, the developer or co-developer shall have to construct the minimum built up area (100000 sqmt.) within a period of ten years from the date of notification of the SEZ in which at. least fifty percent of such area to be constructed within a period of five years from the date of notification. In instant case 10 years of SEZ notification has already been completed on 28.08.2016 and approx. 15000 sqm (1,65,000 sqft.) of built up area have been constructed in the processing area of SEZ. However, the Developer has not completed 50% of construction work even after lapse of 10 years. The, Board authorized DC, NSEZ to issue notice to the developer as to why the letter of approval should not be cancelled and the SEZ denotified. Thereafter, DC, NSEZ will bring a fresh proposal for consideration of the BOA. (xvii) Proposal of M/s. MMG Impex, a unit in MEPZ to reconsider the proposal for manufacture of additional items of sandal wood ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not been kept in abeyance vide Instruction No 75 dated 7.2.2011. Further for EOUs, Custom Notification No 52/2003, stipulates that all goods including electricity can be sold to.EoU without payment of duty. Therefore,. appellant has claimed that UAC order 01.04.2016 directing the unit to refund an amount of ₹ 1,55,76,751/- being the duty foregone on material procured form DTA imported for, operation maintenance of power plant for the period from 01.04.2015 to 15.02.2016 and ordering that no duty free benefits ofr transfer of power to EOU would be allowed is wrong and hence should be cancelled. BoA observed that Department circular dated 06.04.2015. clearly stipulates that those power plants which are presently situated in the processing area of SEZ shall be demarcated as non-processing area and no O M benefits will now be available for such power plants. The unit will now be eligible for O M benefits under Para (iii) of 16.02.2016 power guidelines, subject to the condition that no duty free benefits for transfer of power to EOU shall be allowed as O M benefits are available to the unit. In view of the above BoA, after detailed consideration, rejected the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower guidelines. In view of the above BoA, after detailed consideration, rejected the appeal. (iv) Appeal of M/s. Morgan Teetronics Ltd. (MTL) against the order dated 23.02.2016 passed by the DC NSEZ/UAC M/s. Morgan Tectronics Ltd. (MTL) has preferred an appeal against the order dated 23.02.2016 passed by the DC, NSEZ/UAC which was placed before the 70th BoA meeting held on. 28 th April, 2016. It was decided by the BoA that the appellant should furnish the statement in r/o NFE within a week regarding clearances figures for physical export and trading activity separately. Accordingly, M/s Morgan Tectronics Ltd. vide its letter dated 4.5.2016 had furnished the statement/inputs in connection with physical export/DTA Sale/NFE. for the consideration of Department which was forwarded to DC, NSEZ for verification. DC NSEZ vide his letter dated 2.6.2016 informed that the M/s MTL has not furnished the details of import, export and DTA sale by them in the prescribed format. M/s MTL has informed that their records had been seized by the DRI, Delhi and they will submit the details whenever they will get back the records. DC, NSEZ further stated that since the unit has fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of LoP beyond 22.04.2016 The Board, after deliberations, extended the validity of the LoP up to 22 nd April, 2017. (iii) Request of M/s. NKB Hardware, a unit in NSEZ for extension of LoP beyond 27.10.2012 The Board, after deliberations, rejected the proposal as LOP had already lapsed on 27.10.2012. Item No. 73.9: Proposals for setting up of SEZs (i) Request of M/s. Information Technology Park Limited for setting up of a sector specific SEZ for IT/ITES at Whitefield, Bengaluru, Karnataka, over an area of 1.51 hectares. The Board, after deliberations, approved the proposal for setting up of a Sector specific Special Economic Zone for IT/ITES at Whitefield, Bengaluru, Karnataka, over an area of 1.51 hectares. Item No. 73.10: Requests for duty paid dual usages in the non-processing area (A) Request of M/s. Persipina Developers Pvt. Ltd. a sector specific SEZ for Services at District Raigad, Maharashtra for dual usage in the non-processing, area The BOA did not approve the proposal for grant of permission for dual use.of infrastructure and directed the Developer to de-notify the total area of 1077419 sq.ft. (100094 sqm.) in the No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Gitanjali Gems Ltd. (Panvel Village, Raigad) Gems Jewellery 25.10.2006 SEEPZ The cancellation is subject to the DC furnishing a certificate in the prescribed format certifying that the developer has not availed any tax/duty benefits including Service Tax Exemptions, if any, under SEZ Act/Rules, or has refunded any such benefits availed by it. Item No. 73.13: Appeal before BOA (i) Appeal of M/s. Jai Bharat Plastics a unit in FSEZ against order dated 07.09.2016 passed by UAC, FSEZ. After deliberations, the Board rejected the appeal as the unit has neither achieved NFE positive during the last five years which was stipulated at the time of approval nor they have renewed the proposal before the expiry of the date of LoP. on 22.02.2016. (ii) Appeal of M/s. Jagdamba Impex, against the condition imposed by the Approval Committee (UAC) dated 02.06.2016 in their LoA. After deliberations, the Board ordered that the unit shall import only prime CRGO for the goods to be cleared to DTA and all the conditions specified in the Steel Products (Quality Control) Second Order dated 12.3.2012 of Minist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge, Vardaiah Palem Mandal, Chittoor, Andhra Pradesh over an area of 11.87 hectares. The Board, after deliberations, approved the proposal. Annexure I List of Participants for the Meeting of the Board of Approval for Special Economic Zones held on 9 th November, 2016 under the Chairpersonship of Commerce Secretary, Department of Commerce 1. Ms.. Rita Teaotia, Chairpersonship, BoA Commerce Secretary, Department of Commerce 2. Shri Ajay Kumar Bhalla, , DGFT 3. Shri Alok Vardhan Chaturvedi, Additional Secretary, Department of Commerce 4. Shri Vinay Chhabra, DG, DGEP, Department of Revenue, Ministry of Finance 5. Dr. Tejpal Singh, Additional Director General, DGEP 6. Smt. Deepshikha Sharma, Director, CBDT, Department of Revenue, Ministry of Finance 7. Shri Saroj Kumar Behera, Joint Director, DGEP 8. Shri Anand Krishna DIG (SU Moet CC) 9. Shri A.K. Mishra, Research Assistant TCPO, Ministry of Urban Development, Vikas Bhawan, I.P. Estate, New Delhi 10. Dr. Rajesh, AR, TCPO, Ministry of Urban Development, Vikas Bhawan, I.P. Estate, New Delhi 11. Shri Lokesh Chandra Secretary Commissioner investment Protocol Govt. of Mah ..... X X X X Extracts X X X X X X X X Extracts X X X X
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