Minutes of the 100th meeting of Approval Committee
Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
| ———-"_-‘fe.Rvjvwv«.a€—rvx_veswsgeesssoe | esses<br>SSS | esses<br>SSS | |
|---|---|---|---|
| Followingwere present: | |||
| 1. Shri. Krishan Kumar | : Joint Development Commissioner, KASEZ. | ||
| 2. Shri. Mukesh Pandya | : Deputy Commissioner, D.I.C., Bhuj, | ||
| Representative of D.I.C, Bhuj<br>. | |||
| 3. Shri. Pradeep Sharma _ | : Assistant Commissioner, Customs, Kandla, | ||
| Gandhidham- Representative of | |||
| Commissioner of Customs Kandla. | |||
| 3. Shri. R. G. Khairkar | : Foreign Trade Development Officer, | ||
| Rep. ofJt. DGFT, Rajkot. | |||
| 4. Shri.Dilip Kumar | : Income Tax Officer, Income tax Office — | ||
| . | Representative ofAdditional Commissioner | ||
| ofIncome Tax. | |||
| 5. Shri.R.R.Virda, | : Assistant Executive Engineer, GPCB, | ||
| Kutch (East) Gandhidham, Representative of | |||
| G.P.C.B,Kutch(East)<br>. |
Absentees:-
- Director (Banking) 2. SDM
Review/Confirmation of the minutes of last meeting (99th UAC) of the Approval Committee:-
Minutes of the last meeting of Approval Committee was confirmed.
100.1 NEW PROPOSALS TO SET UP UNITS IN KASEZ
AGENDA - Item No. 100.1.1
M/s. RABAE
Their proposal is for setting up a unit for manufacturing/ service activity i.e repairing of empty cartridge in Kandla SEZ. Shri.Gaurav Batra and Shri. Umesh Batra, representative of the company appeared before the approval Committee and explained their proposal.
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
Shri. Gaurav Batra informed the committee that they will procure electronic waste items like cartridges from DTA and by importing the same, they will then dismantle the cartridge and refurbish the same. He also informed the Committee that they will send certain items to DTA (to recyclers) for some process of refurbishing. They informed the committee that there is no pollution involved during the entire process of refurbishing.
Representative informed the Committee that they already have a functional unit in Jaipur having Tier-II consent for collection of waste.
Approval Committee deliberated on the proposal in detail and made . following observations:
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The proposal involves import as well as DTA procurement of used empty cartridge, used mobiles including push buttons type.
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These items are restricted for import as per Hazardous Waste Management Rules 2016.
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Proposal involves dismantling of components and sending it to DTA for further recycling. This seems to be a major part of the activity as explained by the representative. This appears to violate the concept of direct co-relation between import and export as per Rule 18(4)(d) of SEZ Rules, 2006.
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The proposal is faulty to the extent that the figures of import of raw material, export and NFE shown are inconsistent.
- S. Employment proposed is only two, although it is claimed in the proposal that their project is labour intensive.
In view of above facts that import and reprocessing of electronic waste is treated as very sensitive and as per Rule 18(4)(d), no proposal for recycling of waste shall be considered in Unit Approval Committee, therefore, the Approval Committee rejected the proposal.
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
ee AGENDA- Item No.100. 1.2 M/s. Raj Natural Food Pvt. Ltd.,
Their proposal is for setting up a unit for processing of agro commodities in Kandla SEZ, Gandhidham. Shri. Manish Patel, Director and Shri. Raju Jaiswal, Export Head, of the unit appeared before the approval Committee to explain their proposal. The representative of the unit informed the Committee that Raj Natural Food Private Limited is a company of Raj Foods Group of Companies. That they have a unit at Unjha, Gujarat and they do export from there; their unit is a Certified Co. as per European & US standards. Their export turnover for previous year is about Rs.150 Crores. Their main import is from Africa. The imported food items are processed in their state of art facility center and exported. The representative also informed that they have necessary permission from Spice Board and other agencies.
The Approval Committee after studying the proposal in detail observed that though proposal is for manufacturing activity, however the processes involved in their proposed operation do not involve any manufacturing activity as per the definition of manufacturing given under section 2( r) of SEZ Act 2005 therefore; the Committee decided to term their proposed activity as Trading activity.
The committee observed that certain items requested by unit such as, Millet Seed, Amaranth & Chia Seed comes under restricted category. The Committee after deliberation approved the proposal as trading activity. However the items coming under restricted category Millet Seed, Amaranth and Chia Seeds were not allowed for trading by the unit. It was also decided that whenever Government Policy for export/ Import changes for the said
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
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food items, the Letter of Approval will be reviewed; and accordingly any changes in condition of LoA will be binding on the unit.
100.2 REQUEST FOR BROADBANDING
AGENDA- Item No. 100.2.1
M/s India International, KASEZ.
M/s India International, KASEZ is an approved unit for Warehousing and Service Activity. The issue involved in this case is that the unit was also involved in trading activity without proper authorisation in their LoA and has calculated NFE based on Import / export figures which are applicable for trading unit. In case of Warehousing unit, NFE is on account of service charged in Foreign Currency. The said case was earlier discussed in the 99 UAC held on 07-072016 but none of the representative appeared before the UAC. The contention of the unit that trading also comes in service activity was not accepted by the Approval Committee and noted that the LoA has been granted for warehousing only and decided to call the unit representative for personal hearing in next approval Committee Meeting. The Committee had further directed that they should not do any trading activity till the issue is resolved.
Thereafter, the unit vide their letter dated 28-07-2016 has requested to include trading activity in their renewal / extension letter.
Shri. Zulkarrain Pathan, Sales Manager, of the unit appeared before the Approval Committee. 5j[a] U
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
a The Representative of the firm explained and further admitted that they had not done any warehousing activity as they don’t have any foreign client for warehousing activity, instead they have done the activity of trading. He has further requested for allowing them to do Trading activity.
After deliberation, the Approval Committee found that they have violated the condition of LoA as admitted by the unit representative. The Approval Committee decided to impose a penalty of Rs.50,000 /- under Rule 94(2) of SEZ Rules 2006 on the unit for making business without proper . authorisation. Approval Committee also decided to grant permission for Trading. Accordingly Office of the Development Commissioner was asked to amend their Letter of Permission for trading activity and remove warehousing activity from LoP, after payment of fine is made by unit.
AGENDA- Item No.100. 2.2 M/s Unitrade World
M/s Unitrade World, KASEZ is an approved unit for trading activity of all items except prohibited, canalized and_ restricted items, plastic waste/scrap.
Their request is for broad banding of Warehousing Service Activity in their existing LoA.
It was decided that Approval Committee had already appointed a Committee of Officers to study specific issues concerning Warehousing business in KASEZ as number of units have taken LoA for warehousing. The Committee is expected to submit its report shortly. Therefore, the Unit Approval Committee decided to defer all warehousing proposals till this Committee submits its report to UAC for taking a policy decision on the issue of warehousing. ' ;
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
100.3 MISCELLANOUS ITEMS
AGENDA- Item No. 100.3.1
Objection raised by CERA as Para 1 of CRA/LAR- 68/2009-10 regarding inconsistency of details in APR
Approval Committee observed that this point is placed before UAC as observed/desired by CRA during Audit of the records of Kandla SEZ. The Audit observed that there are no columns for quantity for the purpose of monitoring of utilisation of their goods in quantity terms to show physical export in APR Form — I, since the APR submitted by the unit is in terms of Value only. The Audit had suggested that the issue raised by the Audit regarding modification in the format of APR and incorporating a suitable column with reference to the quantity of goods admitted in the unit’s premises, may be brought before the Unit Approval Committee and its outcome may be communicated to the Audit.
The Approval Committee after discussion and deliberation:-
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decided to refer the point raised by CRA Audit to Ministry of Commerce & Industries for modification in APR.
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Call for information, from the units about utilisation of goods ( in quantity terms) admitted into Zone, after a format is finalised by the Office of the Development Commissioner, Kandla SEZ in this regard.(As Approval Committee is empowered to do so under Sec. 14(1)(c ) of SEZ Act 2005.)
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
AGENDA- Item No. 100.3.2
M/s Aries International:-
M/s Aries International, a partnership firm is an approved unit for manufacturing . Their request is for change in Partnership of their firm.
Approval Committee discussed the issue and Office of Development Commissioner was asked to look into decisions taken in various BoA meetings on the issue of modification of Rule 74(A) regarding transfer of Assets by units upon their exit. Decision may be taken on file and the action taken may be informed in the next UAC for ratification.
It was further decided by the UAC that as there is major change in the partners Shares (more than 50%), so new rent will be applicable.
AGENDA- Item No. 100.3.3
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M/s Integrated Warehousing Kandla Project Development Pvt. Ltd. as Co-Developer.
Ministry vide letter No. F.2/18/2005-FPZ dated 15-02-2007 had approved the proposal of M/s Integrated Warehousing Kandla Project for setting up of FTWZ in KASEZ as a Co-Developer. The performance of the Co-Developer was reviewed by the Approval Committee. The Approval Committee observed that the co-Developer has made a little progress in creation of infrastructure though a period of nine years has passed since the Co-Developer was issued LoA in 2007. The Committee noted following facts:-
- Ministry vide letter dated F.2/18/2005-EPZ dated 15.02.2007 has granted approval as a Co-Developer to M/s Integrated Warehousing Kandla Project Development Pvt. Ltd.
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
a 2. The main motto for approval of Co-Developer is to facilitate setting up of units in FTWZ and to provide electricity, water and other facilities as required for operating the units in the FTW Zone. The Co-Developer shall design and maintain solid waste disposal system in the FTWZ area at his own cost.
ah After the approval of the Ministry, area of 100 acres in the extended area of KASEZ was allotted to the said Co-Developer vide letter dated 16.03.2007. Till the completion of three years from the date of allotment the said Co-Developer neither took any implemental action nor commenced any development activity in the said 100 acres allotted area.
- Considering that many proposal were pending for shortage of space and delay in implementing the project by the Co-Developer, a proposal for reducing the area by 25 acres was forwarded to the Ministry on 08.03.2010. As approved by the Ministry, the Co-Developer has been informed on 03.03.2010 that the area allotted to them has been reduced from 100 acres to 75 acres. After leaving space for peripheral road, present are with CoDeveloper is 69.55 acres.
S. The office of the Development Commissioner made proposal for cancellation of LoA issued to the Co-Developer due to non commencement of development works, non submission of periodical returns under Rule 12 of SEZ Rule, 2006 and BCLUT, to the BoA on 26-08-2014. At that time they were having rental dues of Rs. 18.22 Lakhs and User Charges of Rs. 1.37 Crs.
- The BoA in its 63rd Meeting held on 18-09-2014 had cancelled their LoA as a Co-Developer. MMTC and IL&FS have represented to reconsider the decision. MMTC in their representation informed that thcir business plan was approved by the MMTC Board only in March, 2013 and from
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone. pgpg epee September, 2014, they have started serious preparations. Since MMTC is a Government of India Enterprise under DoC, the BoA decided to review the decision; accordingly, the BoA in its 65th Meeting held on 19-05-2015 revoked their earlier decision made in the 63rd Meeting and restored the CoDeveloper status to them.
rie Recently, Kandla SEZ Authority has issued Form-A dated 10-06-2016 to them for non payment of Rs. 2,14,12,599/- (Rent + Interest + User Charges). The eviction procedures have been undertaken and next PH is fixed on 12-09-2016. The said Co-Developer vide letter dated 22-04-2016 has filed Quarterly and Half Yearly Returns wherein it is only mentioned that the cleaning, filling and leveling of plots and construction of boundry wall is in progress. Also the construction of internal and approach road and temporary site office is in progress.
- The said Co-Developer is charged Rs. 30.33/- for per Sq. Mtrs per annum, whereas, as per the new area we are charging Rs. 192.50 per sq. mtrs per annum to the new units. As per this calculation it can be seen that we are in the loss of Rs. 162.17 per sq. mtrs per annum. That means for 69.50 acres we are in loss of Rs. 4,56,11,366/- per annum. It can be seen that since nine years the said Co-Developer has not been able to implement the project.
9, At the time of initial proposal they had requested for 200 Acres of land. Accordingly they had proposed the total cost of initial Development as Rs. 88,72,73,120/in Phase - I, Rs. 24,30,66,120/- in Phase — II and Rs. 23,99,36,840/- in Phase — III including Administrative Area, Warehousing / Support Area and Land Development.
- As per the letter dated 26-02-2016, the said Co-Developer proposed the following : yy F aaa
Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
==> picture [462 x 454] intentionally omitted <==
Doctor Mohammed Sagheer, CEO and Director of the Co-Developer appeared before the Approval Committee. He informed the Committee that they had certain funding problem which is now being sorted out and that they have found new investors. They further informed that about 5 to 7 units have approached them and have shown interest in setting up their proposal and they will be setting up their units by the end of March 2017.
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
ee The Committee observed that at present no development is happening in the land allotted to Co-developer. The investment proposed by the CoDeveloper as the starting of the project has not been met. They have invested only Rs. 11 Crores in the project. It was also observed that out of 11 crores, 7 crores was on account of rental dues to KASEZ. There is rental due amounting to more than Rs.2 crores already pending against the unit. One more fact emphasised by the Committee is that the original period of time allowed to the Co-Developer for implementation of the project was 3 years while 9 years period has passed.
Approval Committee took a _ serious note of the delay in implementation of their project and decided to refer the matter to BoA for considering issuing of SCN to the Co-Developer for their non- performance and thus cancellation of LoA. AGENDA- Item No. 100.3.4 M/s La Spirit Liquor Trading Co.., Their proposal is for purchase of sticker waste generated by Plastic recycling units of KASEZ during their manufacturing process.No representative appeared before the Approval Committee.
The information called by D.C’s office as decided in the 97t UAC as to how the Plastic recycling units are dealing with their wastes / stickers was placed before the Approval Committee.
The committee noticed that negligible quantity of waste sticker was generated by Plastic recycling units during their manufacturing course as informed by KASEZ Plastic recycling Units Association, Further it was also observed that the proposal falls under Rule 18(4)(a), of SEZ Rules 2006.
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
ee The Approval Committee after deliberation decided to reject the proposal.
AGENDA- Item No. 100.3.5
M/s OPG Power & Infrastructure P. Ltd. as Co-Developer.
Ministry vide letter No. F.1/10/2011-SEZ dated 17-03-2015 has approved the proposal of M/s OPG Power & Infrastructure Pvt. Ltd. as CoDeveloper for providing infrastructure facilities in the KASEZ.
The said case was placed before UAC held to review further developments made by the said unit.
Shri.. Gulab Gidwani, Vice President, appeared before the approval Committee. He informed that they are expecting new guidelines on ‘ Deemed Distribution License’.
The approval Committee therefore decided that this matter will be reviewed after 2 months.
SUPPLEMENTARY AGENDA
100.4 NEW PROPOSALS TO SET UP UNITS IN KASEZ
SUPPLEMENTARY AGENDA - Item No. 100.4.1
M/s. Zip Zap Exim Pvt. Ltd.
Their proposal is for setting up a unit in Kandla Special Economic Zone for trading activity.
Earlier the proposal of the unit was discussed in 99th Unit Approval Committee meeting held on 07.07.2016. The Approval Committee observed that the unit had requested for permission for trading of many items and
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
their representative was not able to explain their exact business plan. It was also noticed by the approval Committee that the party had shown very minimum investment of Rs. 5 lakh in their project, whereas, they intend to trade 368 items. The UAC therefore, had asked the party to submit a clarification on these issues.
The unit thereafter submitted revised list for trading of 11 items mentioned below:-
||Descriptionofgoods|ITC-HSCode|Import/|
|---|---|---|---|
||proposedby theunit||export polic|
||Fabrics|||
||ays<br>.<br>eeeEs|94051090/<br>94052090/ 94054090||
||LED Torch|85131010||
|||85167920||
|||64041990||
|| 06.||CanvasShoes<br>Audio & TV|64041910||
|07.||Components,|85299090|Free|
||TV/DVD/DVB Remote|||
||Rechargeable Battery|||
||for torch & Emergency|85072000|Free|
|light<br>|09.| Christmas Light||94053000||
||100 % Cotton Fabrics|52085290||
|||62052000||
Shri.Gaj Raj Singh, Director of the company appeared before the approval Committee and explained their proposal. He also mentioned that the Directors have fixed deposits in banks which they will be using these FDs of Rs.50.00 Lakhs for investment in the firm.
The Approval Committee after deliberation approved the proposal of the unit for Trading of 11 items mentioned in their proposal.
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
a 100.5 REQUEST FOR BROADBANDING
SUPPLEMENTARY AGENDA - Item No. 100.5.1
M/s Jaggo Overseas
Their proposal is requested for Broad Banding of their LoA and addition of 10 items in their trading activities. Shri. Devang Mehta, Authorised Signatory, of the unit appeared before the approval Committee and explained their proposal.
| He<br>informed<br>the<br>approval<br>Committee | that<br>the | unit | is<br>already | ||
|---|---|---|---|---|---|
| supplying components required for electroplating, to their clients. To further | |||||
| expand their business they require these additional items requested in their | |||||
| application for inclusion in trading. The items mentioned | are also required | ||||
| for | electroplating. | ||||
| After deliberation the approval Committee approved | the proposal and | ||||
| addition | addition | addition of 09 items mentioned below as in their application | for trading | ||
| activity | activity | activity in their LoA except Boric Acid as imports of Boric Acid is subject to | |||
| restriction | restriction | restriction such as import permit etc. The units representative had agreed to | |||
| it. | |||||
| Item | rie hae<br>Code | Import /<br>Export<br>‘<br>Polic | |||
| 75089090 | |||||
| 79021000 | Free. | ||||
| 2 | Nickel Plates and Strips | 75061000 | Free | ||
| 75062000 | Free | ||||
| 74071020 | Free | ||||
| 3 | Copper Metal Strips/Rods/Wires | 74071030 | Free | ||
| 74081190 | Free | ||||
| 4 | DrillTools and Instruments<br>including Drill Bits and Drill Collars | 82051000<br>82059090 | Free<br>Free | ||
| Bearings | 8482 | ||||
| 84131110 | Free | ||||
| Pumps | 84131199 | Free | |||
| 4131990 | Free |
After deliberation the approval Committee approved the proposal and addition of 09 items mentioned below as in their application for trading activity in their LoA except Boric Acid as imports of Boric Acid is subject to restriction such as import permit etc. The units representative had agreed to it.
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
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----- Start of picture text -----<br> | 8 [Catalyst | 88151210 | Free<br>----- End of picture text -----<br>
SUPPLEMENTARYAGENDA - Item No. 100.5.2 M/sPetrochemRoyal
Their proposal is for Broad banding and addition of manufacturing of plastic cans & caps for DTA/ Export sale, in their existing LoA .
Shri. Pramesh Ved, Director of the company appeared before the approval Committee. He explained that they require Plastic Cans and Caps for their captive use for filling their products i.e Lubricants. They will import HDPE for the manufacturing of Plastic Cans. He also informed that they have inquiries for these Plastic Cans and Lids for export and DTA. However, during the discussion unit representative informed that they already have installed plant and also importing the HDPE granules and that they have also started manufacturing of the plastic cans for own use. He further informed that their prospective DTA supplier viz. M/s Reliance Industries of plastic granules is insisting for addition of the above item in their LoA as a condition for duty free supply to them.
The Unit Approval Committee noted that they have neither sought prior approval for setting up the captive plant for manufacturing of plastic cans and caps nor it was part of their original project report and as such they cannot operate this without approval and hence found that they have violated the provision of SEZ Act & Rules and decided to impose a penalty of Rs. 90,000/- under Rule 54(2) of SEZ Rules, 2006.
The Committee after deliberation however decided to regularize their activity of setting up their manufacturing of Cans & Caps for their own captive use only as it is essentially their packing material. UAC has not
Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
approved sale of this manufactured goods i.e Plastic Cans or lids or other plastic packing material into DTA. The approval Committee also advised the unit to apply for fresh LoA, if they want to export/sell their manufactured goods i.e Plastic Cans or lids or other plastic packing material.
100.6 MISCELLANOUS AGENDA
SUPPLEMENTARY AGENDA - Item No. 100.6.1
M/s Maruti Exports
Their proposal is for procurement of raw materials for manufacturing of reconditioned used clothing.
Shri.Prakash M. Jain, Partner, of the unit appeared before the approval Committee and explained their proposal. He explained that they are unable to meet the specific required raw material from the used clothes. He explained that it will be value addition activity. The Approval Committee after deliberation decided to recommend the proposal to Department of Commerce for consideration of BoA, in view of the fact that the issue pertains to business of worn cloth, which is covered under Rule 18(4) of SEZ Rules 2006.
SUPPLEMENTARY AGENDA - Item No. 100.6.2
M/s Strands Textile Mills Private Limited
The unit have intimated regarding appointment of Director Smt. Kamla Jain w.e.f 08.03.2016 and resignation of two Directors (i) Shri Sukhraj Singhvi and (ii) Shri Sandeep Singhvi both w.e.f 20.03.2016. Approval Committee discussed the issue and Office of Development Commissioner was asked to look into decisions taken in various BoA meetings on the issue of application of Rule 74(A) regarding transfer of
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
pg Assets by units upon their exit. Decision may be taken on file and the action taken may be informed in the next UAC.
TABLE AGENDA
100.7 NEW UNIT APPLICATION
TABLE AGENDA - Item No. 100.7.1 M/s New Vibe International :
M/s New Vibe International (Earlier known as M/s Rodex International), is an approved unit for (1) Trading Activity, (2) Manufacturing of articles of apparel and clothing accessories knitted or crocheted or not knitted or not crocheted and (3) Manufacture activity of Pan Masala, Pan Masala containing tobacco(gutkha), Khaini.
Their proposal is for broad banding of warehousing Activity in existing LOA.
Shri. Anand Mehta, Authorised Signatory appeared before the Approval Committee.
The Approval Committee after deliberation decided that Approval Committee had already appointed a Committee of Officers to study specific issues concerning Warehousing business in KASEZ as number of units have taken LoA for warehousing. The Committee is expected to submit its report shortly. Therefore, the Unit Approval Committee decided to djffer all warehousing proposals till this Committee submits its report to UAC for taking a policy decision on the issue of warehousing. Further it was also observed that the unit have an LoA for Trading & manufacture of PAN masala. The Committee observed that the manufacturing and trading activity should be in separate premises.
The Committee after deliberation deferred the Proposal of the unit.
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
a 100.8 BROAD BANDING REQUESTS
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TABLE AGENDA - Item No. 100.8.1
M/s GKN Enterprises :-
Their proposal is to permit them to undertake trading of Melamine Formaldehyde Resin. The Approval Committee in its 99th meeting held on 07-07-2016 didn’t permit trading of the item as the item falls at B3010 in Schedule VI of recent Rules of Ministry of Environment, Forest and Climate Change.
Shri. N.Seenivasan, Promoter of the unit appeared before the approval committee for explaining his proposal. He explained that the product he is dealing with is not a waste as mentioned as per Schedule VI of Hazardous & Other Wastes (Management & Transboundary Movement) Rules 2016 at (B3010). The approval Committee observed that the product is listed in Schedule VI of Hazardous & Other Wastes (Management & Transboundary Movement) Rules 2016 and is thus not under the purview of UAC to give consent for the activities requested by the promoter.
The Committee after deliberation decided to reject their request.
TABLE AGENDA - Item No. 100.8.2
M/s Palmon Exports
The request by the unit is to allow them DTA sale of reprocessed LDP Granules (ITC (HS) Code 39011090) which is not covered under their present LoA. 4
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
NS Shri.Mukesh Joshi, Authorised Signatory appeared before the approval Committee. He informed that they had procured the goods through Intra Zone transfer and have requested for one time permission for clearance of the goods which is lying in their unit for quite a long time. The Approval Committee after deliberation allowed the unit for one time removal of the goods to DTA. However it was observed by the Approval Committee that the goods procured by the unit was lying in their premises even after expiry of their LoA for the said item. As per provisions of Rule 37(2) of SEZ Rules 2006, the approval Committee decided to impose duty on the goods from the date of expiry of LOA till the date of clearance of goods into DTA along with applicable interest.
100.9 MISCELLANOUS ITEMS
TABLE AGENDA - Item No. 100.9.1
M/s Ashwin Enterprise :-
The issuance of Show Cause Notice to M/s Ashwin Enterprise for subletting of warehousing unit to used clothing units for storage of their goods against the condition of LoA was ratified by the approval Committee.
TABLE AGENDA - Item No. 100.9.2
M/s Strands Textiles Pvt. Ltd.
The issue is regarding subletting of warehousing unit to used clothing units for storage of their goods against the condition of LoA.
Approval Committee took a serious note of the fact that some of the units have LoA for warehousing and are subletting the same in violation of the conditions of LoA. Approval Committee directed DC Office to take stern action on this and issue SCN to such units. After issue of SCN adjudication proceedings should be completed expeditiously. vA
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Minutes of the 100th Unit Approval Committee Meeting of Kandla SEZ held on 23.08.2016 at 12:00 hrs. under the Chairmanship of Shri Upendra Vasishth, Development Commissioner, Kandla Special Economic Zone.
SSS SSS SSS SSS TABLE AGENDA - Item No. 100.9.3 Submission of GPCB Certificate with reference to the Environmental audit conducted by this office for recycling units of KASEZ.
Environmental audit of worn & used clothes processing units and plastic recycling units in Kandla SEZ was conducted by M/s Global Environment consultant & Engineering, Surat (an accredited / recognized Environmental Auditor and consultant Agency with GPCB) for ensuring the compliance of relevant provisions of Environment and pollution Acts. The Auditors in its report has reported that out of the total recycling units of Kandla SEZ, four units have not obtained Consolidated Consent & Authorisation (CC&A) from GPCB and seven units has not applied for renewal of their CC&A from GPCB.
These units were given warning letters twice to obtain necessary consent. However, approval committee was informed that some worn and used clothing processing units are still operating without GPCB consent.
Representative of GPCB informed the Approval Committee that used cloth processing industry is now put under White category and GPCB consent is not required for such units and obtaining consent from GPCB is no more mandatory now.
Therefore, UAC directed DC Office to obtain and keep the relevant notification of GPCBin file.
The meeting ended with vote of thanks of the chair.
(UPENDRA VASISHTH) Development Commissioner
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