IN FORCE SEZ / EOU / FTWZ undated

Minutes of the 176th meeting of Approval Committee

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Minutes of the 176th Unit Approval Committee Meeting of Kandla SEZ held on 08.03.2022 at 11:00 hrs. under the Chairmanship of Shri Akash Taneja, Development Commissioner, Kandla Special Economic Zone.

Following were present (physically and via Video Conferencing):

1.	Shri. Satyadeep	: Joint Development Commissioner,
	Mahapatra	KASEZ.
2.	Shri. R. H. Meena	: Additional Commissioner, Customs, Kandla,
		Gandhidham-Representative of
		Commissioner of Customs Kandla.
3.	Shri.AbhishekSharma:JointDGFT,

Office of Jt. DGFT, Rajkot.

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

Absentees:-

Director (Banking) 2. SDM

176.1 Review/Confirmation of the minutes of last meeting (1’75* UAC) of the Approval Committee:-

Minutes of the last meeting of Approval Committee were confirmed.

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176.1 NEW UNIT APPLICATION

AGENDA ITEM NO. 176.1.1 Application for setting up of a Trading unit namely M/s. Motan Enterprise at Kandla Special Economic Zone, Gandhidham, Kutch370201.

A proposal was submitted by M/s Motan Enterprise, Surat for setting up a new unit in Kandla SEZ for trading activity.

Shri S. I. Motanwala, Proprietor of the firm explained their proposal. Shri Motanwala stated that he propose to set up a trading unit in KASEZ mainly for export. He further stated that he is already having one unit in KASEZ viz. M/s. La Spirit Liquor Trading Company and having Shed No. 416, Sector-II, Ground Floor and First Floor and out of which they will utilise First Floor of Shed No. 416, Sector - II for their proposed trading activity.

The Approval Committee after due deliberation decided to approve the proposal for setting up a new unit for trading activity except items at Sr. No. 5 & 6 of the Agenda subject to standard terms and conditions: -

i) None of the items which are restricted or prohibited will be allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC.
ii) 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.
iii) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS).
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 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.

176.2 REQUEST FOR BROADBANDING/ITEM ADDITION

AGENDA ITEM NO. 176.2.1 Request of M/s Chandraganta Trading & Warehousing LLP, KASEZ for addition of items in their warehousing service activity and Trading activity in their existing LoA.

M/s Chandraganta Trading & Warehousing LLP is an approved unit with LoA No. 02/2020-21 dated 30.06.2020 for trading activity and warehousing service activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended.

The said unit has now requested for approval of 5 additional items in their warehousing service activity and trading activity.

Shri Prakash Kaknani, Authorised Representative of the firm explained their proposal. Shri Kaknani stated that they propose to include more items in their trading and warehousing activities in their existing LoA. The Committee asked the representative about their present activity in KASEZ. Shri Kaknani stated that they are presently doing export of some products viz. dates and cardamom and now they want to include additional items in their trading and warehousing activities.

Therefore, the Approval Committee after due deliberation decided to approve the proposal for trading activity and warehousing service activity for 4 items except item at Sr. No. 1 of the Agenda in their existing LoA subject to the following 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.
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. This clause will have overriding effect for any approval granted in LoA now or before.
ili) In case of any discrepancy/mismatch between the above ‘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. 3 .,

vi) Further, the applicant will give an undertaking that none of the items proposed above 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. 176.2.2 Request for addition of item in Trading activity in their existing Letter of Approval No. KASEZ/IA/026/2006-07 dated 12.12.2006 for manufacturing activity, as amended issued to M/s Royal Petro Specialities Private Limited, KASEZ

AGENDA ITEM NO. 176.2.2

M/s Royal Petro Specialities Private Limited, Plot No. MY-3A & 447, Marshalling Yard and Shed No. 322, Sector No. I, Kandla Special Economic Zone, Gandhidham, is an approved unit for Manufacturing Activity of Automotive and Industrial lubricants, brake fluid, petroleum jelly, open gear compound/creosote oil, pour point depressants, coolants etc. vide LoA No. F. No. KASEZ/IA/026/2006-07 dated 12.12.2006 as amended from time to time. Their LoA was broad-banded for addition of trading activity of 02 items vide this office letter dated 28.12.2021.

The said unit has now requested for addition of trading activity of 01 item in their existing LoA.

Shri Vishal Ved, Director of the company explained their proposal. Shri Ved explained that they are already working in KASEZ for manufacturing of lubricants and also trading activity and now they have received inquiry viz. comprehensive package from one of their supplier for export of one item to Nepal and hence they propose to include the said one item in their trading activity. He further stated that the proposed traded item will be for 100% export purpose only and there will be no DTA sale of the said traded item.

The Approval Committee after due deliberation decided to defer their proposal with direction to the unit to give details of the comprehensive package including the proposed duration of the contract.

176.3 MISCELLANEOUS ITEMS

AGENDA ITEM NO. 176.3.1

Request of M/s. Royal Petro Specialities Pvt. Ltd., KASEZ for change in Directors and shareholding pattern of the company.

M/s Royal Petro Specialities Private Limited, KASEZ is an approved unit for Manufacturing Activity of Automotive and Industrial lubricants, brake fluid, petroleum jelly, open gear compound/creosote oil, pour point

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depressants, coolants etc. and trading activity vide LoA No. F. No. KASEZ/IA/026/2006-07 dated 12.12.2006, as amended.

Now the said unit has intimated regarding the change in Directors of the company wherein one Director has resigned and two new Directors have been appointed and submitted copies of DIR-12 containing particulars of changes among the Directors and also change in shareholding pattern of the company.

The Committee after due deliberation decided to defer their proposal and it was decided to examine the role of the promoters/shareholders vis-avis Directors with respect to their responsibility and obligations towards functioning of the company. AGENDA ITEM NO. 176.3.2 Intimation for change in constitution from Proprietorship to Partnership of M/s Shriji Overseas, KASEZ

M/s Shriji Overseas, KASEZ is an approved unit for manufacturing of Gutkha, Khaini, Zarda, Pan Masala, Chewing Tobacco & Filter Tobacco/Kaini and warehousing service activity in Kandla Special Economic Zone, Gandhidham vide LoA No. KASEZ/IA/30/2020-21 dated 09.12.2020, as amended. Now the said unit has intimated regarding change in constitution from proprietorship to partnership and have submitted copy of notarized partnership deed dated 01.12.2021 alongwith their application wherein two new Partners have been inducted along with the existing proprietor. The unit has also submitted copy of Form-G issued from Registrar of Firms, Kachchh District, Gandhidham regarding constitution of partnership firm.

The Committee noted that Department of Commerce vide Instruction No. 109 dated 18.10.2021 has issued guidelines regarding change of name, change of shareholding pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC).

Therefore, the Approval Committee after due deliberation decided to take on record the proposal of change in constitution from proprietorship firm to Partnership firm subject to fulfilment of conditions as stipulated vide Instruction No. 109 dated 18.10.2021. The Committee also directed to forward the case of change in Constitution to the Income Tax Department for necessary action at their eng,

Minutes of the 1768 Unit Approval Committee Meeting of Kandla SEZ held on 08.03.2022 at 11:00 hrs. under the Chairmanship of Shri Akash Taneja, Development Commissioner, Kandla Special Economic Zone.

AGENDA ITEM NO. 176.3.3

Request of M/s. Narayan Marine Tech Pvt. Ltd., KASEZ for renewal of their LoA for further period of five years.

The Committee noted that M/s. Narayan Marine Tech Pvt. Ltd. has submitted a request for renewal of their LoA dated 10.07.2009 which was extended up to 21.03.2021 for a further five years period.

The Committee further noted that the unit has not carried out any authorised operation during their last five year block period 2016-17 to 2020-21.

Shri Hetal Shah, Director of the company explained their proposal. He stated that they have requested for renewal of their LoA for further five years period as they now have export orders for trading activity. The Committee noted that the firm is authorised for trading activity for 24 items as per their LoA, as amended.

The Committee asked the Director as to why they did not carry out any activity during the last five year block period 2016-2021. Shri Shah stated that due to slow market conditions they were not able to start any activity during their last five year block period but now they orders for trading activity and recently they have imported one consignment and also one consignment is under pipeline for their trading activity. He requested to consider their request for renewal of their LoA so that they can start regular export activities from KASEZ.

The Approval Committee after due deliberation decided to approve the renewal of their LoA for further period of five years and also directed the Development Commissioner, KASEZ to issue Show Cause Notice to the unit for Nil NFE during the last five year block period and also authorised the Development Commissioner, KASEZ to adjudicate the case.

AGENDA ITEM NO. 176.3.4 Permission to warehouse goods on behalf of DTA/Foreign Clients - Request of M/s. Shiv Trading Co., a unit for trading and warehousing activity, KASEZ.

The Committee noted that M/s. Shiv Trading Co. has requested for permission to warehouse 05 additional items on behalf of Foreign/DTA clients)

Shri Bishan Singh, Proprietor of the firm explained their proposal. He stated that they propose to warehouse these items on behalf of their clients.

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

, Minutes of the 176th Unit Approval Committee Meeting of Kandla SEZ held on 08.03.2022 at 11:00 hrs. under the Chairmanship of Shri Akash Taneja, Development Commissioner, Kandla Special Economic Zone. as submitted by the unit subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) None of the items which are restricted or prohibited will be allowed to be warehoused 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) Further, with respect to warehoused items viz. Paper products, the KASEZ Customs will draw the samples at the time of import and export of each consignment which will be sent for analysis of GSM and other aspects.
iii) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
iv) 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.
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) Further, the applicant will give an undertaking that none of the 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. 176.3.5 Permission to warehouse goods on behalf of DTA/Foreign clients - Request of M/s. Zest Marine Services Pvt. Ltd. (Unit-II), KASEZ. : The Committee noted that M/s. Zest Marine Services Pvt. Ltd. (Unit-II) has requested for permission to warehouse 11 additional items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Sharad Shetty, Director of the company explained their proposal. He stated that they propose to warehouse these items on behalf of their clients.

The Committee after due deliberation decided to permit the additional items to be warehoused by the above unit except items at Sr. No. 01, 02 & 03 of the Agenda on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) None of the items which are restricted or prohibited will be allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ] 1 o* i

. Minutes of the 176th Unit Approval Committee Meeting of Kandla SEZ- held on 08.03.2022 at 11:00 hrs. under the Chairmanship of Shri Akash Taneja, Development Commissioner, Kandla Special Economic Zone.

This clause will have overriding effect for any approval granted in LoA now or before.
ii) The items falling under Chapter 72 & 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS).
ili) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
iv) 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.
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) Further, the applicant will give an undertaking that none of the 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. 176.3.6 Permission to warehouse goods on behalf of DTA client/Foreign Client - Request of M/s. Texpoly Polymers (Unit-II), KASEZ.

The Committee noted that M/s. Texpoly Polymers (Unit-I]) has requested for permission to warehouse 44 additional items to be warehoused in KASEZ on behalf of DTA/Foreign clients. Shri Mayur Vyas, Authorised Representative of the firm explained their proposal. He informed that they propose to warehouse these items on behalf of their clhents. The Committee noted that the unit has submitted list of 44 additional items for warehousing on behalf of their clients and directed the unit to prune the list of items proposed for warehousing activity and submit a revised list of around 6-8 items which they actually propose for warehousing activity.

The Committee after due deliberation decided to permit the additional items to be warehoused by the above unit (subject to unit submitting revised list of 6-8 items for warehousing) on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) None of the items which are restricted or prohibited will be allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. 8 .

Minutes of the 176th Unit Appréval Committee Meeting of Kandla SEZ held on 08.03.2022 at 11:00 hrs. under the Chairmanship of Shri Akagh Taneja, Development Commissioner, Kandla Special Economic Zone.
This clause will have overriding effect for any approval granted in LoA now or before.
ii) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
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 unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.
v) Further, the applicant will give an undertaking that none of the 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. 176.3.7 Request of M/s Maruti Exports (Warehousing Unit), KASEZ for warehousing of worn used clothes and plastic scrap in their existing LOA No. KASEZ/IA/032/2010-11 dated 29.11.2010, as amended. M/s. Maruti Exports (Warehousing Unit), KASEZ is an approved unit
for warehousing service activity in Kandla Special Economic Zone vide LoA No. KASEZ/IA/032/2010-11/703 dated 29.11.2010, as amended. The Committee noted that the unit’s request was deferred in the 173"¢
UAC meeting held on 30.12.2021 for further consideration due to a case booked on its sister concern M/s Maruti Exports (Worn clothing unit) regarding attempt to clear old and used clothing without mutilation and SCN in the matter was issued and was adjudicated by the DC, KASEZ. Being aggrieved the unit preferred appeal at DGFT which subsequently upheld the penalty imposed by DC, KASEZ. The unit then approached the Hon’ble High Court of Gujarat vide SCA No. 1068 of 2021 wherein the Hon’ble High Court has granted relief to the unit till next date of hearing.

The Committee further noted that the unit’s request pertains to their warehousing division, which is a separate business entity.

Shri Jeetu Jain, Partner of the firm explained their proposal. He informed that they were allowed warehousing of worn used clothing when the LoA was granted on 29.11.2010 but at the time of renewal of LoA issued on 28.05.2021 they were not allowed to warehouse plastic scrap/waste and worn used clothing. He requested to consider their request for allowing warehousing of worn used clothes and plastic scrap. The Committee also noted that the issue of warehousing units was discussed in the 15224 UAC meeting held on 10.01.2020 wherein it was

; Minutes of the 176t Unit Approval Committee Meeting of Kandla SEZ held on 08.03.2022 at 11:00 hrs. under the Chairmanship of Shri Akash Taneja, Development Commissioner, Kandla Special Economic Zone.

decided that there will be no change in the warehousing LoAs and the same shall be renewed at the time of their renewal with original conditions and accordingly Committee amended the decision taken in the 116" Committee meeting by further restricting to the extent that the warehousing of only one worn/used clothing unit will be allowed in each warehouse (apart from other items) and the warehousing units will submit an undertaking to that effect, in order to maintain clarity of accounts in terms of worn clothing to 5 such warehousing units.

The Committee further noted that similar permissions were granted to 3 other warehousing units by the UAC in its 160 meeting held on 04.08.2020 & to 3 other warehousing units by the UAC in its 173'¢ meeting held on 30.12.2021 after restricting the permission to the extent that the warehousing of only one worn/used clothing unit will be allowed in their warehouse (apart from other items). Therefore the Approval Committee after due deliberation decided to keep the additional imposed condition of restricting warehousing services to the extent that the warehousing services to only one worn/used clothing unit will be allowed in their warehouse (apart from other items) and the warehousing unit will submit an undertaking to that effect, in order to maintain clarity of accounts in terms of worn clothing. The Approval Committee after due deliberation decided that there will be no change in the warehousing LoA and the same shall be renewed at the time of their renewal with original conditions.

AGENDA ITEM NO. 176.3.8

ANNUAL PERFORMANCE REPORT (APR) for the Financial Year 2019-20 and 2020-21, as per provisions of Rule 22 of SEZ Rules, 2006 The Committee noted that out of total number of 265 working units as on 31.03.2020, 28 KASEZ units have not submitted their APRs after expiry of stipulated time period for the Financial Year 2019-2020 and out of total number of 281 working units as on 31.03.2021, 83 KASEZ units have not submitted their APRs after expiry of stipulated time period for the Financial Year 2020-2021.

The Committee also noted that due to COVID pandemic, the Department of Commerce, SEZ Division, New Delhi had decided to extend the time period for filing APRs/QPRs by SEZ Units/Developers/EOUs for the year 2019-20 and 2020-21 upto 31.12.2020 and 31.12.2021 respectively. The Approval Committee after due deliberation decided to first issue letters to the defaulting units who have not submitted APRs instead of initiating penal action against them by issuance of SCN. Therefore, the Committee directed the O/o. the DC, KASEZ to first write letters to the defaulting units of KASEZ to explain within 2 weeks as to why they have not

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Minutes of the 176" Unit Approval Committee Meeting of Kandla SEZ held on 08.03.2022 at 11:00 hrs. under the Chairmanship of Shri Akash Taneja, Development Commissioner, Kandla Special Economic Zone.

filed APRs and why action should not be taken against them under the SEZ Act and SEZ Rules and directing the defaulting units to submit the APRs within 2 weeks failing which action should be initiated against them for imposition of penalty under FT (D&R) Act, 1992 read with Rule 54 of SEZ Rules, 2006.

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.

‘Ly[pa\o3¥] av (Akash Taneja) Development Commissioner Kandla Special Economic Zone

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