Minutes of the 177th meeting of Approval Committee

Minutes of the 177th Unit Approval Committee Meeting of Kandla SEZ held on 29.03.2022 at 11:00 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. R. H. Meena
   : Additional Commissioner, Customs, Kandla,
   Gandhidham-Representative of

Commissioner of Customs Kandla.

3. Shri. Abhishek Sharma : Joint DGFT, Office of Jt. DGFT, Rajkot.

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

Absentees:-

1. Director (Banking)
2. SDM
3. I.T.

177.I
Review/Confirmation of the minutes of last meeting (176thUAC) of the Approval Committee:-

Minutes of the last meeting of Approval Committee were confirmed.

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177.1 NEW UNIT APPLICATION

AGENDA ITEM NO. 177.1.1 Application for setting up of a Trading and Warehousing service activity unit in KASEZ namely M/s. Silvershine Warehouse Private Limited, Office No. 805, 8th Floor, Pragati Tower, Rajendra Place, Central Delhi, Delhi- 110008.

A proposal was submitted by M/s Silvershine Warehouse Private Limited, Delhi for setting up a new unit in Kandla SEZ for Trading activity &Warehousing service activity.

Shri Abhishek Malla, Marketing Manager of the company explained their proposal. Shri Abhishek stated that they propose to set up a trading and warehousing unit in KASEZ. The two Directors of the company, Shri. Saim James and Shri. Tarun Borah have experience of trading, import and export. He further stated that the source for financing for the proposed project will be from the Directors and their family members’ personal funds.

The Committee noted that the Directors of the above company are also Directors in M/s. Righttime Impex Private Limited, Delhi who have also been granted approval for setting up a trading and warehousing unit in KASEZ. The Representative of the applicant stated that they wish to set up another unit in KASEZ so that the next generation family members can set up their independent business subsequently.

The Approval Committee after due deliberation decided to approve the proposal for warehousing service activity and trading activity subject to furnishing documents supporting source of funds/financial strength/net worth of both the Directors & KYC of their clients on whose behalf they will warehouse the goods and also 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 warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. iii) Further, with respect to traded item at S. no. 1 of the agenda, the KASEZ Customs will draw the samples at the time of import

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and export of each consignment which will be sent for analysis of GSM and other aspects. iv) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). v) 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.
vi) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
vii) Further, the applicant will submit separate APR for their trading and warehousing service activities and will submit architectural design for earmarking of space for Trading and warehousing activities.
viii) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. ix) 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.

177.2 REQUEST FOR BROADBANDING/ITEM ADDITION

AGENDA ITEM NO. 177.2.1 Request for items addition in Trading /Warehousing service activity of M/s. GSM Global Inc, KASEZ.

M/s. GSM Global Inc, KASEZ is an approved unit vide LoA No. KASEZ/IA/ 05/2021-22 dated 23.06.2021 for Manufacturing, Trading & Warehousing Service activity subject to certain terms and conditions as enumerated in the aforesaid Letter of Approval, as amended.

The said unit has now requested for approval of 3 additional items in their trading activity and warehousing service activity.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta stated that they propose to include additional items in their trading and warehousing activities in their existing LoA as they expect to get business in these items.

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The Approval Committee after due deliberations decided to approve the proposal for trading activity and warehousing service activity for 3 items in their existing LoA subject to the following 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. This clause will have overriding effect for any approval granted in LoA now or before. iii) 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) 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) 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. 177.2.2 Addition of Items under Trading Activity – Request of M/s. Motan Enterprise, KASEZ.

M/s. Motan Enterprise, KASEZ is an approved unit with LoA No. 27/2021-22 dated 09.03. 2022 as amended, for Trading Activity of Locks & Hardware, Hardware products like hinges, door fittings, tableware & Kitchenware, Screw, Bolts, Nuts, Cinnamon & Cinnamon Tree flower subject to certain terms and conditions enumerated in the aforesaid Letter of Approval.

The said unit has now requested for addition of 02 items in the Trading Activity.

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Shri S. I. Motanwala, Proprietor of the firm explained their proposal. Shri Motanwala stated that he proposes to include two items in their trading activity wherein the items would be imported from countries with whom India has Free Trade Agreements such as Sri Lanka, Vietnam, Indonesia, etc. The Committee asked as to why the unit wishes to import the items in SEZ as the same FTA benefit can be availed by way of direct import in DTA also. To this question, Shri S. I. Motanwala stated that they wish to import in SEZ as import into SEZ would attract a low interest rate of 1.75% i.e. at LIBOR rate on the borrowed finances. He further submitted that they would export these items and DTA clearance, if any, would be subject to fulfilment of relevant import/ obtaining TRQ authorization from DGFT and subject to other applicable import policy conditions.

Therefore, the Approval Committee after due deliberation decided to approve the proposal for addition of trading activity of 02 items in their existing LoA subject to the following 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) 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) Further, the KASEZ Customs will at the time of import of each consignment will check the certificate of origin and B/L-wise consignment so as to ascertain whether the said imports are from the countries having Free Trade Agreement with India or otherwise. iv) Further, the unit will not import the said items over and above the quota allotted by the DGFT. v) vi) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. 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. viii) DTA supply if any, would be subject to relevant import/TRQ authorization and all other applicable import policy conditions.

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AGENDA ITEM NO. 177.2.3 Broad banding of Manufacturing Activity (Addition of 01 new product in unit’s LoA) and addition of 02 items under trading activity in their existing LoA - Request of M/s Nimex Trading Corporation, KASEZ

M/s Nimex Trading Corporation, KASEZ is an approved unit for Manufacturing activity & Trading activity of Guthka, Khaini, Pan Masala, Zarda, Tobacco etc. vide LoA No. 27/2020-21 dated 23.12.2020, as amended.

The said unit has now requested for broad banding of 01 item for manufacturing activity and addition of 02 items for trading activity in their existing LoA.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta stated that they want to add 01 item in manufacturing and 02 items in trading activity.

The Approval Committee after due deliberation decided to approve the proposal for addition of manufacturing activity of 01 items and addition of trading activity of 02 items in their existing LoA 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. This clause will have overriding effect for any approval granted in LoA now or before. 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) v) 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.
vi) Further, the unit will submit separate APRs for both of their Manufacturing and trading activities.

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vii) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. viii) items proposed and its raw materials are falling under negative list and if the items are found in negative list, penal action will be initiated against them.

AGENDA ITEM NO. 177.2.4 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

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.

The Committee noted that their proposal requires further examination as in their sister unit viz. M/s. Royal Petro Oil Refinery LLP, the CRA Audit has raised objection with regard to their LoA which is yet to be replied to.

The Approval Committee after due deliberation decided to defer their proposal with directions to examine the imports made by the two units after grant of LOA vis-a-vis the export to DTA clearance ratio in respect of the unit.

AGENDA ITEM NO. 177.2.5 Request of M/s. Shriji Overseas, KASEZ for addition of 05 items in manufacturing activity and addition of 05 items in warehousing service activity in their existing LoA for Manufacturing activity and Warehousing Service activity.

M/s Shriji Overseas, KASEZ is an approved unit for manufacturing of Gutkha, Khaini, Zarda, Pan Masala, Chewing Tobacco & Filter

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Tobacco/Kaini and warehousing service activity of 20 items in Kandla Special Economic Zone, Gandhidham vide LoA No. KASEZ/IA/30/2020-21 dated 09.12.2020, as amended.

The said unit has now requested for broad banding of 05 items for manufacturing activity and addition of 05 items for trading activity in their existing LoA.

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

AGENDA ITEM NO. 177.2.6 Addition of new items in their LoA for Trading and Warehousing Service Activity – Request of M/s. United Safeway India Pvt. Ltd., KASEZ.

M/s. United Safeway India Pvt. Ltd., KASEZ is an approved unit for Trading and Warehousing service activity in Kandla Special Economic Zone vide Letter of Approval No. KASEZ/IA/35/2020-21 dated 02.02.2021, as amended.

The said unit has now requested for addition of 05 items for trading activity and addition of 05 items for warehousing service activity in their existing LoA.

Shri Balaji Naidu, Director of the company explained their proposal. Shri Naidu stated that they are having trading and warehousing unit in KASEZ and they have also submitted KYC of their clients and their foreign client has already made shipment of one of their proposed items at S. No. 4 of the Agenda. Further, he explained that they wish to add some items for trading and warehousing activity in their existing LoA. He further stated that the item at S. No. 5 of the Agenda will be procured from M/s GNFC - a Gujarat Government PSU i.e. by way of procurement from DTA from the said PSU.

The Approval Committee after due deliberation decided to approve the proposal for trading activity and warehousing service activity 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

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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. This clause will have overriding effect for any approval granted in LoA now or before. iii) The items falling under Chapter 73 will be subject to compulsory registration under Steel Import Monitoring System (SIMS). iv) Further, with respect to traded/warehoused item at S. No. 5 only the said item will be allowed to be traded/warehoused and acetic anhydride will not be allowed for trading/ warehousing. v) 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.
vi) vii) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. viii) 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.

177.3 MISCELLANEOUS ITEMS

AGENDA ITEM NO. 177.3.1 Intimation towards Business Transfer, change in constitution and name of the firm– Request of M/s. Euro India Cylinders Limited, KASEZ

M/s Euro India Cylinders Limited, KASEZ is an approved unit vide LoA No. KASEZ/IA/049/2007-08 dated 13.05.2008 for undertaking the authorized activity of (i) Manufacturing activity of High pressure CNG Cylinders and Industrial Cylinders and other cylinders as approved and (ii) Trading activity as approved and amended from time to time.

Now, the said unit has intimated that as a part of re-organization the company has transferred their unit along with factory building, all machineries and leasehold land to Euro Global Gas Cylinders LLP (Limited

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Liability Partnership) vide Business Transfer Agreement dated 07.03.2022 executed between the Company and LLP. The unit further undertakes that due to the aforesaid business Transfer Agreement this unit of manufacturing of High Pressure CNG Gas Cylinders and Industrial Cylinders set up in Kandla Special Economic Zone shall not exit out of Special Economic Zone and continue to operate as a going concern and also their registered address will remain as same.

Shri Anand Mehta, Authorised Representative of the company explained their proposal. Shri Mehta explained that as a part of re- organisation the company has been taken over by Euro Global Gas Cylinders LLP as an ongoing concern and the LLP will take over all the assets and liabilities of the present company. He further stated that the family member of one of the Director of the present company is a partner in M/s Force International Cylinders LLP which is holding 50% stake in the LLP.

The Committee was informed that after the Business Transfer Agreement the name of Euro India Cylinders Limited has changed to Euro Global Gas Cylinders LLP (Limited Liability Partnership) with effect from 27.10.2021.

The Committee also noted that there were two directors in the company Euro India Cylinders Ltd. as mentioned below.

Directors of the Euro India Cylinders Ltd. Sr. No. Name of the Partners 1. Shri Pravin S Nandu 2. Shri Dhanji A Gala

After the Business Transfer the new partners in the newly formed LLP firm i.e M/s Euro Global Gas Cylinders LLP are as under:

Sr. No. Name of the Partners Shareholding patterns 1. Mr. Ashwani Choudhary 25% 2. Mr. Sourabh Bansal 25% 3. Force International Cylinders LLP, Partner Rekha Pravin Nandu 50%

The Committee also noted that the new company i.e. M/s Euro Global Gas Cylinders LLP is to take over all the assets and liabilities of the existing KASEZ unit of M/s Euro India Cylinders Limited. and they have submitted the following documents in respect of the proposed change:-

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1. Limited Liability Partnership (LLP) Agreement dated 16.11.2021 made between Mr. Ashwani Choudhary and Mr. Sourabh Bansal.
2. Supplementary Deed of Limited Liability Partnership (LLP) dated 28.12.2021 executed between Mr. Ashwani Choudhary, Mr. Sourabh Bansal and Force International Cylinders LLP.
3. Certificate of incorporation of Limited Liability Partnership of M/s Euro Global Gas Cylinders LLP dated 27.10.2021
4. IEC of the Company M/s Euro Global Gas Cylinders LLP.
5. Pan Card of the company.
6. Income Tax Returns of the Partners of M/s Euro Global Gas Cylinders LLP
7. Business Transfer Agreement executed by and between Euro India Cylinders Limited and Euro Global Gas-Cylinders LLP dated 07.03.2022.

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. to be undertaken by the Unit Approval Committee (UAC).

The Committee noted that the said business transfer is on the basis of ongoing concern and without existing unit opting out/exiting from SEZ scheme.

Therefore, the Approval Committee after due deliberation decided to take on record the proposal of change in name of the company and change in constitution from Limited Company to Limited Liability Partnership (LLP) as above 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 Name/Change in Constitution to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 177.3.2 Request of M/s Krishna Enterprise, KASEZ for item addition in their warehousing activity.

The Committee noted that M/s. Krishna Enterprise has requested for permission to warehouse 11 additional items on behalf of Foreign/DTA clients.

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The Committee after due deliberation decided to permit the additional items to be warehoused by the above unit except item at Sr. No. 11 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) 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, second hand/used electronic items/Machinery will not be permitted/allowed to be warehoused. iii) 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) 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. 177.3.3 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 01additional item to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Goda Prabhakar, Proprietor of the firm explained their proposal. He stated that their proposal was deferred in the 174th UAC with a direction to submit specific list of items which are not restricted/ prohibited and also the specific list of vehicles where the tyres proposed to be imported are used. Now they have submitted specific list of items and a detailed reply mentioning the specific list of vehicles where the said ATV and OTR tyres will be used. He further stated that the ATV and OTR tyres will be imported

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from Hong Kong, China and USA for off road purpose only and mountain riding purpose.

The Committee after due deliberation decided to permit the item to be warehoused by the unit on behalf of DTA/Foreign clients as submitted by the unit. This permission is also subject to the unit fulfilling NFE criteria and also subject to following conditions:

i) 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, the KASEZ Customs will at the time of import of each consignment will send a sample tyre for quality checking to check the life of the tyre/fit for declared usage/other safety compliances. iii) 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) 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. 177.3.4 Permission to warehouse goods on behalf of DTA client/Foreign Client - Request of M/s. Ubix Inc, KASEZ.

The Committee noted that M/s. Ubix Inc has requested for permission to warehouse 04additional items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

The Committee after due deliberation decided to permit the additional items to be warehoused by the above unit except items at Sr. No. 03 & 04 of the Agenda on behalf of DTA/Foreign clients as submitted by the unit

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subject to the unit fulfilling NFE criteria and submission of KYC of their clients and also subject to following conditions:

i) 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 warehousing of food preparation items the same is allowed subject to compliance of FSSAI norms and all other statutory compliance viz. NOC from Ministry of Health and other concerned agencies before such clearance. iii) 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) 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. 177.3.5 Permission for DTA sale of Mercantile goods - Request of M/s Sujan Oil & Gas Infra Logistics, KASEZ.

The Committee noted that M/s. Sujan Oil & Gas Infra Logistics, KASEZ has requested to allow them DTA sale of items which they are presently exporting i.e for removal of the no DTA sale condition imposed on the unit.

The Approval Committee after due deliberation decided to defer their proposal and decided to examine their request on file after taking into consideration the types of items allowed to the unit at present and also comparing with other units dealing in similar goods and whether such units have been given permissions for DTA sale.

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AGENDA ITEM NO. 177.3.6 Reconsideration of “No DTA Sale” condition as imposed in the LoA - Request of M/s Palmon Exports, KASEZ

The Committee noted that the proposal of M/s Palmon Exports for setting up a unit for trading activity was discussed in the 133rd UAC meeting held on 16.08.2018 and the Committee at the time of consideration of the Unit’s proposal noted that these items are largely sensitive items of textile & electronics. Therefore, the Approval Committee after due deliberation had approved the proposal subject to 100% export and no DTA sale condition.

    Now the said unit has requested for allowing of DTA sale of traded 

items.

The Committee noted that the unit is a habitual defaulter in rental dues and also a case has been booked against the unit by the DGCEI which is under investigation by the said agency.

Therefore, the Approval Committee after due deliberation decided to reject their proposal.

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