Minutes of the 170th meeting of Approval Committee

Minutes of the 170th Unit Approval Committee Meeting of Kandla SEZ held on 24.09.2021 at 10:00 hrs. under the Chairmanship of Shri Akash Taneja,
Development Commissioner, Kandla Special Economic Zone.

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Following were present (via Video Conferencing):

1. Shri. Satyadeep
   : Joint Development Commissioner,
   Mahapatra

KASEZ.

2. Shri. V. J. Boricha : Additional Commissioner of Income Tax, Rajkot.

3. Shri. Madhukar Kumar : Deputy Commissioner, Customs, Kandla,
   Gandhidham-Representative of

Commissioner of Customs Kandla.

4. Shri. Kanak P. Der : General Manager, DIC, Bhuj.

Absentees:-

1. Director (Banking)
2. SDM
3. DGFT

Review/Confirmation of the minutes of last meeting (169thUAC) of the Approval Committee:-

Minutes of the last meeting of Approval Committee were confirmed.

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170.1 NEW UNIT APPLICATION AGENDA ITEM NO. 170.1.1 Application for setting up of a Trading and Warehousing Service unit in KASEZ namely M/s. A. J. International, 205, Ambica Arcade, Plot No. 300, Ward 12/B, Gandhidham Gujarat-370201.

A proposal was submitted by M/s A. J. International, Gandhidham for setting up a unit in Kandla SEZ for trading and warehousing service activity.

Shri Anil John, Proprietor of the firm explained their proposal. Shri John explained that their proposal to set up a trading and warehousing unit in KASEZ was deferred in the 167th UAC meeting held on 29.06.2021 with the direction to unit to submit the copies of contracts entered with their suppliers for trading and warehousing items and also submit a revised list of items which they actually intend to trade/warehouse.

He further stated that now they have submitted the copies of contract and also submitted the revised item list for trading and warehousing activities. The Committee noted that the proprietor has also submitted its net worth certificate from C.A.

The Approval Committee after due deliberation decided to approve the proposal for trading and warehousing service activity except item at Sr. No. 1 of the Agenda from trading activity subject to standard terms and conditions: -

i) The approval is subject to the condition that the applicant should seek a prior approval of any additional items they intend to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.
ii) None of the items which are restricted or prohibited will be allowed to be traded/warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC.
iii) In case of any discrepancy/mismatch between the ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.
iv) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
v) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vi) Further, the applicant will give an undertaking that none of the items proposed are falling under negative list and are not

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hazardous or require environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.1.2 Application for setting up of a Trading/Warehousing unit in KASEZ namely M/s. A. P. Logistics, Sector-1/A, Plot No.-355, Second Floor, Gandhidham, Kutch-370201.

A proposal was submitted by M/s A. P. Logistics, Gandhidham for setting up a unit in Kandla SEZ for trading and warehousing service activity.

Smt. Nirupama Singh, Proprietor along with Shri Ramesh Pradhan, Authorised Representative of the firm explained their proposal. Shri Pradhan explained that their proposal was deferred in the last meeting with direction to call the proprietor of the firm in the next meeting and also submit a revised list of trading/warehousing items with 8 digit ITC HS code which they actually intend to trade/warehouse.

Shri Pradhan further stated that now they have submitted the revised list of trading and warehousing items and also KYC documents of their clients on whose behalf they intend to warehouse the goods.

proposal for trading and warehousing service activity except items at Sr. No. 12 to 15 of the Agenda from trading activity and also items at Sr. No. 12 to 15 of the Agenda from warehousing service activity subject to standard terms and conditions: -

i) The approval is subject to the condition that the applicant should seek a prior approval of any additional items they intend to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.
ii) allowed to be traded/warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC.
iii) iv)

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v) vi) items proposed are falling under negative list and are not hazardous or require environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.1.3 Application for setting up of a Manufacturing and Warehousing Service unit in KASEZ namely M/s. Plast-O-Fine Industries (Unit - II), Shed No. 271, Sector – III, Kandla Special Economic Zone, Gandhidham – 370 230.

A proposal was submitted by M/s Plast-O-Fine Industries (Unit - II), KASEZ, Gandhidham for setting up a unit in Kandla SEZ for manufacturing and warehousing service activity.

Shri K. M. Mathew, Authorised Representative of the firm explained their proposal. Shri Mathew stated that their proposal was discussed in 167th UAC meeting held on 29.06.2021 wherein the Approval Committee after due deliberation decided to defer the proposal with direction to the unit to submit layout plan for manufacturing and warehousing activities in their allotted Shed No. 276 and submit the copies of contracts entered with their suppliers for warehousing items. He further stated that they cannot buy machinery or enter into contracts with the supplier without first getting formal approval for the proposal and requested for approval of their proposal.

proposal for manufacturing and items for warehousing service activity except items at Sr. No. 1 & 2 of the Agenda from warehousing service activity subject to the applicant furnishing 8 digit ITC HS Code for items for manufacturing, its raw materials and warehousing service activity and also subject to standard terms and conditions: -

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) The approval is subject to the additional condition that the applicant should seek a prior approval of any additional items they intend to warehouse and submit KYC details of clients to

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the Office of the Development Commissioner before undertaking the authorised warehousing activity.
iii) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. iv) v) vi) vii) items proposed and its raw materials are falling under negative list and are hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.1.4 Application for setting up of a warehousing unit in KASEZ namely M/s. Imperial Overseas Pvt. Ltd. (Unit-II), Plot No.16/17, Sector-II, KASEZ, Gandhidham-370 230.

A proposal was submitted by M/s Imperial Overseas Pvt. Ltd. (Unit-II), KASEZ, Gandhidham for setting up a unit in Kandla SEZ for Warehousing service activity.

Shri K. M. Mathew, Authorised Representative of the firm explained their proposal. Shri Mathew stated that they are already an existing unit in KASEZ for manufacturing activity and now they propose to set up a new warehousing unit in KASEZ.

proposal for warehousing service activity except item at Sr. No. 13 to 15 from warehousing service activity subject to standard terms and conditions: -

i) The approval is subject to the additional condition that the applicant should seek a prior approval of any additional items they intend to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.

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ii) iii) Further, with respect to warehoused items viz. cashewnuts the same is allowed to be warehoused subject to fulfilment of the MIP condition as prescribed under Import/Export policy.
iv) v) vi) vii) items proposed are falling under negative list and are not hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.1.5 Application for setting up of a unit in KASEZ namely M/s. Universal Confectionary and Food Products Pvt. Ltd. Unit-III, Hotel Airlink 75, Off Nehru Road, Nr. Santacruz Airport, Vile Parle, Mumbai, Maharashtra – 400 099.

A proposal was submitted by M/s Universal Confectionary and Food Products Pvt. Ltd. Unit-III, Vile Parle, Mumbai for setting up a unit in Kandla SEZ for manufacturing activity.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta explained that they are already operating in KASEZ and have got two units – one for biscuits & confectionery items for which they were issued LoA in 2011 and another for Shaving blades as Unit- II for which they have been issued LoA in 2019. Now, the biscuits and confectionery business is not feasible due to downtrend in the export market. Therefore, they intend to set up a new manufacturing unit for manufacture of lubricants and grease in their existing premises.

The Committee noted that the applicant has submitted net worth certificate of both their Directors Shri Narayan J. Pagarani and Shri Suresh Bherwani.

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proposal for manufacturing activity subject to standard terms and conditions: -

i) Any restrictions on import/export of manufactured items and its raw materials will apply.
ii) iii) iv) v) items proposed and its raw materials are falling under negative list and are hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

170.2 REQUEST FOR BROADBANDING

AGENDA ITEM NO. 170.2.1 Addition of Trading Activity – Request of M/s. Akshaya Marine Suppliers, KASEZ.

M/s. Akshaya Marine Suppliers, KASEZ is an approved unit with LoA No.02/2019-20 dated 16.05.2019, for Trading Activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval.

The said unit has now requested for addition of 36 items for Trading Activity in their existing LoA.

Shri Pradeep Mayapalli, Partner of the firm explained their proposal. Shri Pradeep stated that they are in the trading business and supply goods to ships and requested for addition of some items for trading activity in the existing LoA.

proposal of additional 36 items in their trading activity subject to standard terms and conditions:-

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i) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. This clause will have overriding effect for any approval granted in LoA now or before. ii) iii) Further, the items will be subject to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable and more particularly BIS standards and an undertaking shall be submitted to this effect by the unit i.e. conforming to the applicable BIS standards. Further, the unit will furnish an
undertaking that the items proposed for trading will be for ship supplies only.
iv) v) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.2.2 Addition of Items under Trading Activity/ Warehousing Service Activity – Request of M/s. Mission Pharma Logistics (India) Pvt. Ltd, KASEZ.

M/s. Mission Pharma Logistics (India) Pvt. Ltd, KASEZ is an approved unit with LoA No. KASEZ/IA/1857/2001 dated 25.10.2001 as amended, for Trading Activity and Warehousing and Distribution Services of Pharmaceuticals Products namely Medicines & Disposables subject to certain terms and conditions enumerated in the aforesaid Letter of Approval.

The said unit has now requested for addition of 59 items for Trading Activity and Warehousing Service Activity in their existing LoA.

Shri Vivek Milak, Authorised Representative of the company explained their proposal. Shri Milak stated that they are exporting pharma products in Kit combinations to UNICEF, USFPA, etc. and now they are getting positive enquiry for more products. The company is an Indian counterpart of their Denmark based company.

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proposal for addition of 59 items in their trading activity and warehousing service activity as these are supplied to multi-lateral agencies like UNICEF, USFPA excepting those items which are placed under restricted/prohibited category by DGFT. The approval shall be subject to standard terms and conditions:-

i) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ii) iii) iv) v) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.2.3 Request for additional item for manufacturing activity in their existing Letter of Approval No. 24/2017-2018 dated 01.09.2017 issued to M/s Probity Make Keep and Trades (Unit-II) and addition of Trading Activity in their existing LoA.

M/s. Probity Make Keep and Trades (Unit-II), KASEZ is an approved unit with LoA dated 01.09.2017 issued from F. No. KASEZ/IA/B.T(II)- 24/2017-18 for manufacturing activity (i) Cold rolled Stainless Steel Sheet (ii) Coils and Circles of different specification (from C.R Sheets and Coils H.S Code- 72193190, 72193390) subject to terms and conditions enumerated in the aforesaid Letter of Approval.

The said unit has now requested for broad banding of their manufacturing activity for addition of 04 items and also addition of trading activity of 06 items in their existing LoA.

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Shri Rakesh Bansal, Proprietor of the firm explained their proposal. Shri Bansal stated that they want to include some items in their manufacturing activity and also addition of trading activity in their existing LoA as they are getting enquiry for more items in their manufacturing activity and also for trading of goods.

addition of manufacturing activity of 04 items and grant of separate LoA for trading activity of 06 items subject to standard terms and conditions: -

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. iii) The items falling under Chapter 72 & 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv) v) vi) The above permission is also subject to further condition that the unit shall maintain separate accounts for Manufacturing and trading activity and earmark separate space for both the activities.
vii) Further, the unit will submit separate APRs for both of their Manufacturing and trading activities.
viii) ix) items proposed and its raw materials are falling under negative list and are hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

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AGENDA ITEM NO. 170.2.4 Request of M/s. Ubix Inc, KASEZ for broad-banding for process addition in manufacturing activity in their existing LoA of manufacturing activity.

M/s Ubix Inc, KASEZ is an approved unit for Re-manufacturing activity of repairing, Reconditioning of empty Printer Cartridge and used/damaged mobile phones in Kandla Special Economic Zone vide LoA No. KASEZ/IA/31/2009-10/ dated 10.03.2010, as amended from time to time. Further, warehousing service activity was also included in their existing LoA vide letter No. KASEZ/IA/31/2009-10 dated 22.07.2021.

Now the unit has requested for broad-banding for process addition in manufacturing activity in their existing LoA and submitted 05 items for process addition in their manufacturing activity.

Shri Peyush Miglani, Partner of the firm explained their proposal. Shri Miglani explained that they are in KASEZ for manufacturing of reconditioning of empty printer cartridge. The printer cartridges models are getting outdated very quickly resulting in excess inventory of printer cartridges. Now they intend to do process addition in printer cartridges by dismantling the empty printer cartridges and getting various components like plastic chips in the form of PS, ABS and screws, drums, unused toners and exporting the same.

The Committee noted that a reference has been made to SEZ division of DoC in another case regarding jurisdiction of UAC in cases pertaining to units set up for import of other goods for recycling under Rule 18(4)(d) of SEZ Rules. The case is accordingly deferred.

AGENDA ITEM NO. 170.2.5 Request of M/s. Hitex Healthcare Pvt. Ltd, KASEZ for Broad-banding of their manufacturing activity in their existing LoA for manufacturing activity.

M/s. Hitex Healthcare Pvt. Ltd, KASEZ is an approved unit for manufacturing activity of Surgical Gowns/apparels etc. in Kandla Special Economic Zone, Gandhidham, vide LoA No. KASEZ/IA/020/2016-17 dated 01.03.2017, as amended from time to time.

The said unit has now requested for addition of 04 items for manufacturing activity in their existing LoA.

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Shri Vinod Sharma, HR & Plant Admn. of the company explained their proposal. Shri Sharma stated that they want to include 4 items in their manufacturing activity. He further stated that for manufacturing 4 items they will not require any capital goods and the same will be manufactured from their existing machinery and they have sufficient space in their allotted premises.

The Committee asked the representative of the unit that whether they will export textile raw material for masks and coveralls as the same are prohibited for export. Shri Sharma stated that they will procure non-woven fabrics from local suppliers and no PP kits will be exported. He further stated that Drapes manufactured by them are being used in operation theatre.

addition of manufacturing activity of 04 items in their existing LoA subject to standard terms and conditions and also subject to the condition that the unit will submit an undertaking that they will not export textile raw materials for masks and coveralls or any other items which are placed under Prohibited category by DGFT. The approval shall be subject to standard terms and conditions:-

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) iii) iv) v) items proposed and its raw materials are falling under negative list and are hazardous or require environmental clearance for storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

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170.3 MISCELLANEOUS ITEMS

AGENDA ITEM NO. 170.3.1 Request of M/s. Trimurti Fragrances & Flavours Pvt. Ltd., for permission to import betel nut/ areca nut for authorized operation.

M/s. Trimurti Fragrances & Flavours Pvt. Ltd., KASEZ is an approved unit for manufacturing activity of Guthka, Khaini, Zarda, Pan Masala, Chewing Tobacco, Filter Khaini and Preparation containing chewing tobacco vide Letter of Approval F.No. KASEZ/IA/22/2019-20 dated 27.02.2020, as amended.

Now the said unit has requested for permission to import Betel Nut/Areca Nut.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta explained that for manufacturing their finished products they are procuring betel nut from local market and requested to allow them import of betel nut as the domestic prices of the said product is high as compared to Import price.

The Committee noted the unit has requested for import following item: -

Sr. No. Description Of Goods ITC HS Code Description as per Import/ export policy Import/ Export Policy 1. Betel Nut 08028010 08028020 08028030 08028090 08029000 Areca nuts: Whole, Split, Ground, Other, Other Free, Import is free, if CIF value is Rs. 251/- and above per kg.

request of the unit for import of betel nut subject to the condition that the betel nut imported will be consumed in their finished products for 100% exports and no job work/trading & intra-zone sale of betel nut will be allowed i.e. the same will be consumed only by the actual user. Further, the betel nut is allowed to be imported subject to the condition that the Import CIF value is not lesser than the MIP prescribed under Import/Export Policy.

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AGENDA ITEM NO. 170.3.2 Intimation of change in partnership of the firm – Request of M/s. Commodities Trading, KASEZ.

M/s. Commodities Trading, KASEZ is an approved unit for warehousing service activity & trading activities vide LoA No. KASEZ/IA/007/2013-14 dated 19.08.2013 as amended from time to time.

Now the said unit has intimated regarding change in their
partnership firm and intimated that one of their partner has medical issues and due to bad health he is unable to continue as partner of the firm, hence one family member has been induced as new partner in the firm and submitted copy of Form-G issued from Registrar of firms, Kutch District, Gandhidham.

The Committee noted that Department of Commerce vide Instruction No. 89 dated 17.05.2018 has issued guidelines regarding change in shareholding pattern, name change pertaining to SEZ units wherein change of name, change of shareholding pattern, etc. may be undertaken with the prior approval of Approval Committee in respect of units.

Therefore, the Approval Committee after due deliberation decided take on record the proposal of change in profit/loss sharing ratio of the firm as above subject to fulfilment of conditions as stipulated vide Instruction No. 89 dated 17.05.2018.

The Committee also directed to forward the case of change in Name/Constitution to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 170.3.3 Permission to warehouse goods on behalf of DTA/foreign clients – Request of M/s. Cargo Care Agency, KASEZ.

The Committee noted that M/s. Cargo Care Agency has requested for
permission to warehouse 03 items to be warehoused in KASEZ on behalf of Foreign/DTA clients.

Shri Goda Prabhakar, Partner of the firm explained their proposal. He stated that they propose to warehouse goods on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit on behalf of DTA/Foreign clients as

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submitted by the unit subject to the unit fulfilling NFE criteria and submitting KYC of their clients and also subject to following conditions: -

i) ii) iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. v) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.3.4 Permission to warehouse goods on behalf of DTA client – Request of M/s. Flamingo Logistics, KASEZ.

The Committee noted that M/s. Flamingo Logistics, KASEZ has requested permission to warehouse 02 items to be warehoused in KASEZ on behalf of Foreign/DTA clients.

Shri Kiran Singh Kochhar, Partner of the firm explained their proposal. He stated that they propose to warehouse products on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submitting KYC of their clients and also subject to following conditions: -

i)

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ii) iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. v) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.3.5 Permission to warehouse goods on behalf of Overseas/DTA client – Request of M/s. JMBM Warehousing, KASEZ

The Committee noted that M/s. JMBM Warehousing has requested for permission to warehouse 01 item on behalf of DTA/Foreign clients.

Shri Gulab Gidwani, Partner of the firm explained their proposal. He stated that they propose to warehouse products on behalf of their clients.

The Committee after due deliberation decided to permit the item to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submitting KYC of their clients and also subject to following conditions: -

i) ii) iii) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv)

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v) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vi) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.3.6 Permission to warehouse goods on behalf of DTA Importer/Foreign Clients - Request of M/s. Regent Ropes, a unit for manufacturing, trading and warehousing activity, KASEZ.

The Committee noted that M/s. Regent Ropes has requested for permission to warehouse 14 items to be warehoused in KASEZ on behalf of Foreign/DTA clients.

Shri K. M. Mathew, Authorised Representative of the firm explained their proposal. He informed that they propose to warehouse products on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit except items at Sr. No. 13 & 14 of the Agenda on behalf of DTA/Foreign clients as submitted by the unit and subject to the unit fulfilling NFE criteria and submitting KYC of their clients and also subject to following conditions: -

i) ii) Further, with respect to warehoused items viz. cashewnuts the same is allowed to be warehoused subject to fulfilment of the MIP condition as prescribed under Import/Export policy.
iii) iv) v) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.

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vi) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.3.7 Permission to warehouse goods on behalf of DTA/Foreign client – Request of M/s. Unicorn Multimode Logistics, KASEZ.

The Committee noted that M/s. Unicorn Multimode Logistics has requested for permission to warehouse 05 items to be warehoused in KASEZ on behalf of DTA/Foreign clients.
Shri Goda Prabhakar, Proprietor of the firm explained their proposal. He informed that they propose to warehouse products on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit. No second hand/refurbished items will be permitted for warehousing. This is subject to the unit fulfilling NFE criteria and submitting KYC of their clients and also subject to following conditions: -

i) ii) Further, second hand/used Printers and Xerox Machines will not be permitted/allowed to be warehoused.
iii) iv) v) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vi) items proposed falls under negative list or is hazardous or requires environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

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AGENDA ITEM NO. 170.3.8 Permission to warehouse goods on behalf of Overseas/DTA client – Request of M/s. Vishwas Enterprises, KASEZ

The Committee noted that M/s. Vishwas Enterprises has requested for permission to warehouse 03 items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Ravindra Ojha, Authorised Representative of the firm explained their proposal. He informed that they propose to warehouse products on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and also subject to following conditions:-

i) ii) iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. v) items proposed falls under negative list or is hazardous or requires environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 170.3.9 Request of M/s Krishna Enterprise, KASEZ for approval of items in their warehousing activity.

The Committee noted that M/s. Krishna Enterprise has requested for permission to warehouse 03 items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

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Nobody appeared before the Committee to explain their proposal. Therefore, the Committee decided to defer their proposal.

AGENDA ITEM NO. 170.3.10 Permission for DTA sale of manufactured goods - Request of M/s Oswal Tradex, KASEZ.

M/s Oswal Tradex, KASEZ is an approved unit for Trading and Warehousing Service Activity in Kandla Special Economic Zone vide Letter of Approval No. KASEZ/IA/030/2010-11 dated 29.11.2010, as amended. The said LoA was further broad-banded for manufacturing activity of Tarpaulin made from HDPE Laminated Fabrics vide letter No. KASEZ/IA/030/2010-11 dated 13.06.2011. Further, their LoA was also broad-banded for manufacturing activity of Mix Plastic Floor Sweeping Granules/Grinding/ Agglomerates/Powder/Flakes of various Quality like LDPE/PP/HDPE/ LLDPE and all other plastic products vide letter No. KASEZ/IA/030/2010- 11 dated 23.05.2019 subject to the condition that the unit will not undertake any DTA sale and that their activity will be on 100% physical export basis.

Shri Mukesh Parekh, Authorised Representative of the firm appeared for the hearing. He submitted that they may be allowed DTA sales of manufactured items as approved vide letter dated 23.05.2019 apart from exports of manufactured goods as was allowed to other similar plastic units of KASEZ for plastic items in primary form as condition of 100% export of manufactured goods is discriminatory and due to this they could not start the manufacturing activity of items approved vide letter dated 23.05.2019 till date. He further assured that they will achieve positive NFE as per the SEZ Act and SEZ Rules.

The Committee noted that similar permissions have been granted to other units for manufacturing of various plastics in primary forms in the 159th UAC meeting held on 22.07.2020, 160th meeting held on 04.08.2020, 161st UAC meeting held on 20.08.2020, 163rd meeting held on 27.10.2020 and 164th UAC meeting held on 16.12.2020 wherein the UAC has not imposed 100% physical export conditions on such units.

The Approval Committee after due deliberation decided to allow the unit to undertake DTA sale also apart from exports of their manufactured goods which is permitted to other similarly placed units subject to the conditions that the unit will abide by the provisions of SEZ Act and SEZ Rules and will achieve positive NFE criteria as per Rule 53 of the SEZ Rules, 2006.

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AGENDA ITEM NO. 170.3.11 Ratification of request already approved in file

The Approval Committee ratified the one time permission granted to the following unit by the Development Commissioner, KASEZ.

1. M/s. Star Exim Warehouse – one time permission granted on 20.09.2021 for Assorted Garments (HS Code 61171090) – 1 container.

TABLE AGENDA- Item No.170.4.1 Request of M/s. Eco Plastics and M/s. Anita Exports (Used Clothing Division) for amending the conditions of transfer imposed vide UAC meetings dated 04.08.2020 and 16.12.2020

The Approval Committee noted that the UAC in its 160th meeting held on 04.08.2020 has approved change of name of M/s. Anita Exports (Plastic Division) to M/s. Eco Plastics and change in constitution of the partnership firm wherein Shri Harmeet Singh Kohli became partner of the firm with 95% shares of profit/loss and Shri Javed Yakub Nathani remains partner with 5% shares of profit/loss as per Instruction No. 89 dated 17.05.2018 along with assets and liabilities.

Further, the Approval Committee noted that the UAC in its 164th UAC meeting held on 16.12.2020 has approved change in the constitution of the firm wherein Shri Harmeet Singh Kohli has become the sole proprietor.

Now M/s Eco Plastics vide its letter dated 23.09.2021 has represented that as per Partnership deed dated 28.07.2020, the name of the firm was changed from M/s. Anita Exports (Plastics Division) to M/s. Eco Plastics and as the lease of M/s Anita Exports viz. Plot No. 419/B, Sector-IV, KASEZ cannot be transferred to M/s Eco Plastics as the subject premises is mortgaged by the Rajkot Nagrik Sahkari Bank (RNS Bank) and for transfer of the same NoC of RNS Bank will be required. In this regard, M/s Anita Exports vide their letter dated 23.09.2021 intimated that subject premises viz. Plot No. 419/B, Sector-IV, KASEZ is mortgaged by them to the Rajkot Nagrik Sahkari Bank (RNS Bank), therefore the lease for the subject premises cannot be transferred to M/s Eco Plastics.

Shri Harmeet Singh Kohli, Proprietor of M/s Eco Plastics explained their proposal. Shri Kohli informed that M/s. Anita Exports was having LoA for plastic recycling and worn & used clothing. The said LoA was split into two LoAs in 2011 – plastic division and used clothing division. He entered as

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Partner in the plastic division vide Partnership deed dated 28.07.2020 and the name of the unit was also changed from Anita Exports (Plastic Division) to M/s. Eco Plastics with 95% share of him. Later, the said Partnership firm of M/s. Eco Plastics was changed into a Proprietorship firm and now he is the sole proprietor. He further stated that the building on the said Plot No. 419/B allotted to M/s. Anita Exports was mortgaged with RNS Bank and without NOC from RNS Bank, the said plot cannot be transferred in favour of M/s. Eco Plastics. He stated that they have submitted Amendment dated 23.09.2021 to the Partnership Deed dated 28.07.2020 and Deed of Retirement dated 09.11.2020 wherein they have undertaken that the lease and ownership of Plot No. 419/B, Sector – IV, KASEZ will continue to be with M/s. Anita Exports (Used Clothing Division) and not to M/s. Eco Plastics, rent and any other liability of Plot No. 419/B will be the sole responsibility of M/s. Anita Exports (Used Clothing Division) & M/s. Eco Plastics has no obligation for the said plot and M/s. Eco Plastics will operate from any other premises that may be available through the permitted means.

The Committee noted that the proposal of M/s. Eco Plastics for change in constitution from partnership firm to proprietorship firm was approved by the UAC as per Instruction No. 89 dated 17.05.2018 as a going concern which includes transfer of assets and liabilities in favour of the incoming unit. However, in the present case as the building constructed in Plot No. 419/B, Sector – IV, KASEZ allotted to M/s. Anita Exports (Plastic Division) has been mortgaged with RNS Bank and without NOC from RNS Bank, the said plot cannot be transferred in the favour of M/s. Eco Plastics. Further, both the outgoing unit and incoming unit have submitted Amended Deed dated 23.09.2021 wherein they have undertaken as under: -

(1) The lease and ownership of the subject premise will continue to be M/s. Anita Exports (Used Clothing Division) and not M/s. Eco Plastics. (2) The obligation and the responsibility for the rent and/or any other liability on the subject premise should be solely on M/s. Anita Exports (Used Clothing Division). (3) M/s. Eco Plastic has no obligation for the subject premise including obligation for rent payment on loan, bank liabilities or any other liability related to the subject premise. (4) M/s. Eco Plastics will not operate from the subject premise, rather M/s. Eco Plastics will operate from any other premise that may be available through the permitted means.

The Approval Committee after due deliberation decided to accept the Amended Deed dated 23.09.2021 submitted by both the units and decided

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to amend the earlier decision taken in its 160th UAC meeting held on 04.08.2020 to the effect that the transfer in terms of Instruction No. 89 dated 17.05.2018 as a going concern already allowed by the said UAC shall stand valid except for transfer of Plot No. 419/B, Sector-IV, KASEZ which will continue to be in the possession of M/s. Anita Exports (Used Clothing Division) as the same is mortgaged with RNS Bank. The Approval Committee at the same time directed M/s. Anita Exports to clear the rental dues for Plot No. 419/B and directed M/s. Eco Plastics to acquire space through any permitted means to undertake their authorised operations.

Notwithstanding to the decisions of the Committee, if the DC Office/Approval Committee notices any instance of default in rent or
pending legal proceedings as on date of decision of the Committee or any legal proceedings that may be initiated after the decision of the Committee against the unit/firm/company and/or its Proprietor/Partner/Director, which has a bearing on the decision taken/LoA issued to the firm in any manner, the LoA granted will be liable for action, including cancellation under the FT (D&R) Act and necessary action will be taken against such units in terms of applicable provisions of law.

The meeting ended with vote of thanks of the chair.

     (Akash Taneja) 

Development Commissioner Kandla Special Economic Zone