TMI Blog2021 (11) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... s, consumables, spares and finished goods in stock. It is also stated in Rule 74 that if the unit has not achieved positive Net Foreign Exchange, the exit shall be subject to penalty that may be imposed under the Foreign Trade (Development and Regulation), Act, 1992. Rule 74(2) says about three conditions that is applicable on the exit of a unit. Similarly, other formalities are also mentioned in Rule 74 (3), (4) and (5). There is nothing in Rule 74 or in the Act 2005, which will give an opportunity of hearing to a co-developer while considering an application for exit order. The short point raised by the petitioner is that the prayer of the 4th respondent is not for getting an exit order. If there is any grievance to the petitioner regarding the arrears of rent, the petitioner is free to agitate the same in accordance to law, before the appropriate authority. But the petitioner cannot challenge Exts.P10 and P11 order, which according to me, is only an exit order and the co-developer of the 4th respondent has no role in it. Therefore, according to me there is nothing to be interfered with Exts.P10 and P11 - Petition dismissed. - WP(C) NO. 6570 OF 2021 - - - Dated:- 11-10-2021 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh the same. ii) Issue a writ of mandamus or any other appropriate writ order or direction commanding the respondents, in the event of this Hon'ble court finding that it is a case of exit order then to debar the fourth respondent from further carrying out their activities inside any Special Economic Zone since it is a case of exit which means that there is complete divesting of activity from any Special Economic Zone in the interest of justice. 2. Heard the learned counsel for the petitioner and the learned counsel for the 4th respondent. I also heard the learned Central Government Counsel appearing for respondents 1 to 3. 3. The learned counsel for the petitioner reiterated his contentions in the writ petition. The learned counsel submitted that the prayer of the 4th respondent is not for an exit order and they are trying to shift their unit to another place. The leaned counsel takes me through Rule 74 of the SEZ Rules, 2006, which deals about exit of units. According to the counsel, on a perusal of Exts.P5 and P8 it is clear that the prayer of the 4th respondent is to shift the unit and not for an exit order. The learned counsel specifically takes me through para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel submitted that when an application for exit order is submitted by a Unit, the authority need to consider whether the conditions under Rule 74 of the SEZ Rules, 2006 are complied with or not. The 3rd respondent, after considering the same, passed the exit order and there is nothing to interfere with the same. The learned counsel submitted that a detailed counter affidavit is filed to substantiate the case of the 4th respondent. 5. The learned CGC submitted that a statement is filed on behalf of respondents 1 to 3. The learned CGC takes me through the counter affidavit especially paragraph 12 of the same and submitted that a person can have any number of Units holding separate LOAs for different authorized operations, in one or more SEZs in India subject to the condition that each Unit is treated as a separate SEZ Entity/Unit. The learned CGC submitted that the authority concerned passed the order strictly in accordance to Rule 74 of the SEZ Rules, 2006 and there is nothing to interfere with the same. 6. I considered the contentions of the petitioners and the respondents. I also perused the pleadings and documents in the writ petition along with the counter affidavit/state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the prevailing Export Promotion Capital Goods Scheme under the Foreign Trade Policy subject to the Unit satisfying the eligibility criteria under that Scheme. (5) Depreciation norms for capital goods shall be as given in sub-rule (1) of rule 49. 8. A reading of the above provision will show that a Unit may opt out of Special Economic Zone with the approval of the Development Commissioner and such exit shall be subject to payment of applicable duties on the imported or indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock. It is also stated in Rule 74 that if the unit has not achieved positive Net Foreign Exchange, the exit shall be subject to penalty that may be imposed under the Foreign Trade (Development and Regulation), Act, 1992. Rule 74(2) says about three conditions that is applicable on the exit of a unit. Similarly, other formalities are also mentioned in Rule 74 (3), (4) and (5). There is nothing in Rule 74 or in the Act 2005, which will give an opportunity of hearing to a co-developer while considering an application for exit order. The short point raised by the petitioner is that the prayer of the 4th respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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