TMI BlogMinutes of the 106th meeting of the Board of Approval for SEZ held on 7th October, 2021 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 ..... hase II, Hinjewadi, Pune, Maharashtra. The Board, after deliberations, noted that LOA of developer has already expired and decided not to grant further extension . Development Commissioner, SEEPZ was directed to take consequential action as per SEZ laws. 106.3 Request for extension of LoA of the units (five proposals) 106.3(i) Request of M/s Mahadi Organics Pvt. Ltd., a unit in Plot No. Z/51 Z/52 Dahej SEZ Ltd. at Village Luvara, Taluk Vagra, Distt. Bharuch, Gujarat for extension of the Letter of Approval (LoA) upto 03.09.2022. The Board, after deliberations, approved extension of the validity of LoA up to 3rd September, 2022. 106.3(ii) Request of M/s Axiom Chemicals Pvt. Ltd. in Plot No. Z/80, Dahej SEZ Ltd, Dahej, Village Luvara, Tulak Vagra, Distt. Bharuch, Gujarat for extension of the Letter of Approval (LoA) for one year beyond 26.10.2021 upto 26.10.2022. The Board, after deliberations, approved extension of the validity of LoA up to 26th October, 2022. 106.3(iii) Request of M/s. Sands Infrabuild Private Limited, unit in Smartcity (Kochi) Infrastructure Private Limited SEZ for extension of the Letter of Approval (LoA) beyond 25.9.2021 for a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 29.08.2019. 106.4(iii) Request of M/s. Infinit Infratech LLP., for approval as a Co-Developer in Plot No. 13/4, MIDC-ITATES SEZ, Rajiv Gandhi Infotech Park, Hinjewadi, Phase-III, Pune 411 057 for the purpose of construction of all type of buildings in processing area, operation and maintenance of infrastructure and leasing of floors to SEZ units. The Board, after deliberations, approved the proposal of M/s. Infinit Infratech LLP, for co-developer status in Plot No. 13/4, MIDC-IT/ITES SEZ, Rajiv Gandhi Infotech Park, Hinjewadi, Phase-III, Pune for the purpose of construction of all types of buildings in processing area, operation and maintenance of infrastructure and leasing of floors to SEZ units in accordance with the co-developer agreement dated 16.06.2021 entered into with the developer i.e. MIDC, subject to standard terms and conditions as per the SEZ Act and Rules provided that the lease period shall be in accordance with DoC's Instruction No. 98 dated 29.08.2019. 106.4(iv) Proposal of M/s. AEML SEEPZ Limited for Co-Developer status for implementation of reduction of tariff charges for electricity in SEEPZ SEZ. The Board, after deliberations, approve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ins, 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. 106.5(ii) Request for approval of transfer of 100% equity shareholding in MPSEZ Utilities Limited (co-developer) from Adani Ports and SEZ Ltd. to Adani Transmission Limited. The Board, after deliberations, approved the proposal for transfer of 100% equity shareholding in MPSEZ Utilities Limited (co-developer) from Adani Ports and SEZ Ltd. to Adani Transmission Limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. 106.5(iv) Request of M/s. Experion Hospitality (Hyderabad) Pvt. Ltd. for approval for transfer of their shares to M/s. Phoenix Ventures Pvt. Ltd., developer of the IT/ITES SEZ at Ranga Reddy District, Telangana. The Board while considering the proposal noted that certain inquiry was being conducted by office of the Directorate of Enforcement, Jaipur under the provisions of FEMA, 1999 against M/s Experion Hospitality Hyderabad Pvt Ltd (formerly known as Gold Resorts and Hotel (Hyderabad) Pvt Ltd), RoC- Delhi claiming FDI investment for purchase of land. Accordingly, the Board took the view of representative of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h all relevant rules of Revenue/Company Affairs/SEBI etc., 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 CBDT. 106.6 Procurement of restricted items from DTA (three proposals) 106.6(i) Procurement of sand/soil by Kandla SEZ units and ratification of approval granted under delegation of powers granted to Development Commissioner. The proposal from DC, KASEZ for ratification of appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Granules Omnichem Pvt. Ltd. Ramky SEZ River Sand 3,600 cubic meter 16.08.2021 5. M/s. Granules Omnichem Pvt. Ltd. Ramky SEZ Soil (Murram) 800 cubic meter 16.08.2021 6. M/s. Jyothi Quartz Surface APIIC Bldg. Product SEZ Sand 1500 MT 16.08.2021 The Board, after deliberations, decided to ratify the approval granted by the Development Commissioner under DoC's instruction dated 18.05.2020 for procurement of restricted item viz. sand subject to the condition that it should be ensured that the allowed items are actually used in the SEZ and all the environmental and other relevant regulations are complied with. 106.6(iii) Proposal of M/s Laxmi Ideal Interiors for 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rashtra into 'Multi Sector SEZ in terms of Rule 6(A)(i) of the SEZ Rules, 2006 subject to the condition that all the terms and conditions prescribed under the SEZ law for setting up of a multi sector SEZ, viz. minimum contiguous land area requirement, minimum processing area requirement, FTWZ area duly demarcated being exclusively used for trading and warehousing purpose etc are fulfilled by the developer. 106.9 Proposal for setting up of SEZ (two proposals) 106.9(i) Request of M/s. Dahej SEL Limited for setting up of a Multi-Product SEZ at Pakhajan, Tal. Vagra, Dist. Bhaurch, Gujarat over an area of 650 Ha. The Board, after deliberations, granted in-principle approval for setting up of Multi Product Special Economic Zone at Pakhajan, Tal. Vagra, Dist. Bharuch, Gujarat over an area of 650 Ha. 106.9(ii) Proposal of M/s. VSF Projects Limited for setting up of a Multi-Product FTWZ at Ankulpaturu Village, SPSR Nellore District, Andhra Pradesh over an area of 50 Ha (132.96 Acres). The Board, after deliberations, approved the proposal for setting up of a Multi-Product FTWZ at Ankulpaturu Village, SPSR Nellore District, Andhra Pradesh over an area of 50 Ha. (132 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oper on 07.04.2021. Being aggrieved by the decision of rejecting approval for exemption from taxes for supply of services, the appellant is preferring this appeal to the BOA as per the powers granted to the board under Section 9(g) read with Section 9(2b) of the SEZ Act, 2005. Observations Findings The Board heard the appellant. Based on submission by appellant and discussion, following was observed: SEZ law allows for zero rating of IGST payable on inputs and inputs services supplied by a DTA entity to SEZ developer/units for the purpose of carrying out their Authorised Operations. Based on submission by appellant, it is clear that in the instant case the labour charges involved in laying of the cable are connected to authorised operations of the developer and the same are exclusively used by the SEZ developer for authorised operations within the SEZ and not meant for any non-SEZ purpose. The fact that the labour charges have a clear nexus to the authorised operations of SEZ developer and the same is exclusively used for such purpose has not been disputed by UAC. Further, the appellant had shared decision of Hon'ble Delhi High Court in the case of J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of electric cable from Electricity Department outside the zone to the power station in the zone. Decision on Supplementary Agenda - I 106.11 Request for extension of LoA of the Developer (one proposal) 106.11(i) Request of M/s. Rudradev Township Private Limited for further extension of the validity period of formal approval, granted for setting up of IT/ITES SEZ at Solankurunai Village, Madurai, Tamil Nadu for a period of two years upto 31.07.2023. The Board, after deliberations, approved extension of the validity of formal approval up to 31st July, 2022. The Board further directed the DC, MEPZ to submit the progress report on the project in the month of December for further review by the Board. 106.12 Proposal for setting up of SEZ (one proposal) 106.12 (i) Proposal of M/s. DLF Limited for setting up of an IT/ITES SEZ over an area of 20.02 hectares at Villages Kherki Daula and Shikohpur, Tehsil - Manesar, Distt - Gurugram (Haryana). The Board noted that there are some contiguity issues in the proposal. Accordingly, DC, NSEZ desired to withdraw the proposal, which was allowed by the Board with direction to submit the revised proposal. 106.13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into warm shell building and to lease the built-up space in the SEZ. The Board, after deliberations, approved the proposal of M/s. SMEDC Services Private Limited for co-developer status for conversion of bare shell buildings into warm shell building in an area of 2606.77 Sq. mtrs (28059 Sq. feet) and to lease the built-up space in the above said area of the SEZ in accordance with the co-developer agreement dated 21.07.2021 entered into with the developer subject to standard terms and conditions as per the SEZ Act and Rules provided that the lease period shall be in accordance with DoC's Instruction No. 98 dated 29.08.2019. 106.17 Miscellaneous cases (six proposals) 106.17(i) Application for approval of Authorized Operations request by Co- Developer M/s. ATS savvy Developers LLP in GIFT Multi Services SEZ. The Board, after deliberations, approved the proposal of M/s. ATS Savvy Developers LLP for use of 2220 square meters of area out of the approved total area of 2888 square meters for the multi-level car parking for allotment to approved SEZ units in the category of IFSC, FTWZ, IT/ITES, in order to optimize the use of built-up area subject to standard terms an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one Industries Association for renewal of LoAs of Plastic recycling units for 5 years. The Board was informed that after due consultation with all concerned stakeholders, a policy regulating plastic and used/worn cloth units was issued on 27.05.2021 with the approval of competent authority. Accordingly, the request for renewal of LOA of the plastic recycling units were considered by the BoA in its 104th meeting held on 28.05.2021. Recently, based on examination of the submissions of KASZIA, Ministry of Environment, Forests Climate Change (MoEF CC) vide their letter dated 21.09.2021, clarified that as per the amended notification dated 27.01.2021, it is clear that import of 'post- industrial or pre-consumer polyethylene wastes' and Polyrnethyl Methacrylate' by SEZ and EOU units would not be affected after 18 months from the date of notification. However, the percentage of export obligation may be decided after review/audit undertaken as mentioned in amended notification. Representatives of Department of Revenue confirmed that the existing revised policy would require that plastic recycling units would have to be assessed for their performance with respect to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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