IN FORCE SEZ / EOU / FTWZ

Minutes of the 203rd meeting of Approval Committee

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Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

ee Following were present:

1.	Shri. Marut Tripathi	: Joint Development Commissioner,
		KASEZ.
2.	Shri. Rahul Singh	: Joint DGFT, Office ofJt. DGFT,
		Ahmedabad.
		(Video Conferencing mode).
3.	Shri Shrikant Mantri	: Deputy Commissioner ofCustoms,
		Rep. ofCommissioner ofCustoms, Kandla.
4.	Shri. Vincent Colaco	: Assistant Commissioner ofIncome Tax,
		Gandhidham.
5.	Shri. M. U. Sumra	: Senior Inspector, DIC, Bhuj
		(Video Conferencing mode).
6.	Shri. Himanshu	: Deputy Development Commissioner, KASEZ
	Gunawat	(Special Invitee)
7.	Shri. Bhanu Jain	: Deputy Commissioner ofCustoms, KASEZ
		(SpecialInvitee)

Absentees:-

Director (Banking) 2. SDM

203.1 Review/Confirmation of the minutes of last meeting (202"4UAC) of the Approval Committee:-

Minutes of the last meeting of Unit Approval Committee were confirmed. | i

Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

AGENDA ITEM NO. 203.1.1

Application for setting up of a Manufacturing & Trading unit in KASEZ namely by M/s. Good Shape Bharat Malleable Iron Pipe Fittings Pvt. Ltd., Plot No.-17-18, Front Side, Sector 10/C, GIDC, Gandhidham, Gujarat. Iron A proposal has been submitted by M/s. Good Shape Bharat Malleable Pipe Fittings Pvt. Ltd., Gandhidham, Gujarat for setting up a unit in Kandla SEZ for manufacturing activity. Shri Shri Mohamed Ali, Director of the company explained the proposal. Iron Ali stated that they are in the business of Manufacturing of Malleable StatePipe Fittings and they are operating in this line for past 5 years in the of Tamil Nadu where there one unit is working well. He further submitted that they will import the raw material from China and after carrying out the process on the raw material, finished goods will be exported to the Gulf countries. Their final product is used in the fire safety products. Currently, their one plant is operating in Tuticorin, Tamil Naidu and on demand the same product is exported via Kandla port or Mundra Port and this is increasing their transportation cost. To eliminate the transportation cost, they want to set up the unit in Kandla Special Economic Zone due to proximity to the Kandla Port and Mundra Port. He also submitted that they had the export of Rs.16 crore for last year from the factory in the Tamil Naidu.

The Committee enquired how much investment in the capital goods will be done by your unit. In reply, Shri Ali submitted that around 2 crore capital goods will be procured for the manufacturing purpose.

Committee enquired how much investment in the capital goods will be done by your unit. In reply, Shri Ali submitted that around 2 crore capital goods will be procured for the manufacturing purpose.

The Committee found that applicant has not submitted the list of capital goods, raw materials required for manufacturing of the finished goods, flow chart and manufacturing process of the finished goods, Audited balance sheet of the current firm to correlate and judge the experience of the firm in this current business. Further, some ITRs were not provided, cost of the project is also not properly calculated and wrongly totalled in their project report.

The Committee further observed that such deficiency should be avoided when unit is coming for setting up a new manufacturing plant in any SEZ. Shri Ali accepted their mistake and assured that complete project report will be submitted. . b

Minutes of the 203™4 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

nutes of the 203™4 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

; The Committee also enquired about how much area is required for setting up the proposed manufacturing unit and how area will be bifurcated for the authorized operations and activity. Shri Ali replied that they will be requiring the area of around 20,000 Sq. Ft, out of which 5,000 Sq Ft will be used for the capital goods and other remaining area i.e. 15,000 Sq Ft will be utilized for keeping the raw materials and finished goods. The Committee asked then how much area will be spared as a Green Zone or Belt observing the environment norms. Shri Ali could not reply on this point. .

The Committee also noted that there is no list of trading goods has been provided then for which material will they will carry out the Trading Activity. In reply, Shri Ali submitted that their final manufacturing products will be first sold to the traders in the Gulf Countries and thereafter traders will sale the same product to the buyers. This will be called as trading.

Therefore, the Approval Committee after due deliberation decided to defer their proposal with direction to the applicant to submit their complete proposal for setting up a manufacturing unit after removing all the deficiencies as pointed out during the time of the meeting and after exploring all the options which was agreed by the representative of the proposed unit.

manufacturing unit after removing all the deficiencies as pointed out during the time of the meeting and after exploring all the options which was agreed by the representative of the proposed unit.

AGENDA ITEM NO. 203.1.2 Application for setting up of a Manufacturing & Trading unit in KASEZ by M/s. GKN Chemical India Pvt. Ltd. Unit-II. A-1001, 10t* Floor, Bopal Road, Iscon Temple, S G Highway, Ahmedabad.

A proposal has been submitted by M/s. GKN Chemical India Pvt. Ltd. Unit-II, Ahmedabad for setting up a unit in Kandla SEZ for manufacturing activity.

Shri N. Seenivasan, Director along with Shri Ratna Swami, General Manager (Finance) of the company explained the proposal. Shri Swami stated that they have incorporated 4 GKN Group of companies with name GKN Petrochem LLP, GKN Food Products Pvt. Ltd, GKN Resources India Pvt. Ltd & GKN Warehouse & Logistics LLP and having total turnover of their group company around 1152.00 crore. In new product line, their production and capacity of finished goods will be 500 kl per day.

Shri Seenivasan informed the Committee that they want to set up a manufacturing unit of Acetate family and their company is a zero debt company. Their final products are having multiple use and will be used in the Poly film industry, Paint industry, Polymer industry, Pharma industry 3 \ etc. Their unit will be a second unit in the4 which will produce

Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

inutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

the Ethyl Acetate. Further due to the proximity of the Kandla and Mundra Port, they want to set up a unit in the Kandla Special Economic Zone. He also explained about the manufacturing process and how the raw materials will be utlised for the production of finished goods. He also submitted that with this new project, they will give the employment to 200 people.

The Committee asked the unit representatives how much space is required for the setting up a new unit. Shri Seenivasan replied that around 15 acres land is required, he also explained that their finished goods are highly combustible therefore to keep the distance between the storage tanks and keep precautions, these much of space is required. Further, they are going to deal with the Class A, B & C chemicals which cannot be stored together, so maintaining the safer distance between the storage tanks, space is required.

The Committee enquired that still that much space is not justified and informed the applicants to revisit their project in terms of space and give the revised land requirement.

Further, the Committee also informed the applicant that unit Approval Committee is not giving any permission of trading and warehousing activity in the new 100 acre area, therefore, trading activity will not be permitted.

lso informed the applicant that unit Approval Committee is not giving any permission of trading and warehousing activity in the new 100 acre area, therefore, trading activity will not be permitted.

Shri Seenivasan understood the space constrain and submitted that they will give the revised land requirement and ready to withdraw the proposal of trading activity.

The Approval Committee after due deliberation decided to approve the proposal for setting up a manufacturing unit subject to submission of revised land requirement and also subject to submission of correct ITC HS with regard to manufactured item at Sr. No. 4 of their proposal. This approval is also subject to standard terms and conditions as under:

i) Any prohibitions on import/export of manufacturing items and its raw materials will apply.
ii) Further, the import and export of items will be subject to the FTP conditions in the manner applicable to the SEZ units.
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. 4 ae

Minutes of the 203 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

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 ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.
vii) Further, the applicant will give an undertaking that none of the items proposed and its raw materials are falling under negative list and if the items are found in negative list, penal action may be initiated against them.

203.2 REQUEST FOR BROADBANDING/ITEM ADDITION

AGENDA ITEM NO. 203.2.1

Addition of Goods under the Trading Activity of the existing LoA - Request of M/s. Capital Foods Private Limited, KASEZ.

M/s. Capital Foods Pvt. Ltd., KASEZ is an approved unit issued with LoA No. KASEZ/IA/1962/2003-04 dated 24.10.2003 for Manufacturing & Trading activity, as amended subject to certain terms and conditions enumerated in the aforesaid Letter of Approval.

Now, the unit has requested for some items addition in their Trading activity in their existing LoA.

Shri Vivek Milak, Authorised Representative and Shri Vijay Mugundan, Authorised Representative of the company explained their proposal. Shri Milak stated that they are in KASEZ for manufacturing of ready to eat food items and now they have received inquiry for trading of bakery products and other food items for exports to Australia, USA, Europe and Far East. He further stated that they will also indulge in DTA sale of the proposed traded items; however, the same will be only nominal/ meagre.

The Approval Committee after due deliberation decided to approve the proposal for addition of new items in trading activity in their existing LoA. The approval shall also be subject to the following 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. This clause will have overriding effect for any approval granted in LoA now or before.

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) 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. >

Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

1i1) Further, no DTA sale is allowed for the approved traded items.
iv) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
v) The above permission is also subject to further condition that the unit shall maintain separate accounts for manufacturing and trading and earmark separate space for both the activities.
Vi) Further, the unit will submit separate APRs for their manufacturing and trading activity.
vii) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.
viii) Further, the unit will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to
. the items approved in LoA.

taking of such activities.

viii) Further, the unit will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to
. the items approved in LoA.
1x) Further, the unit will give an undertaking that none of the 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 may be initiated against them.

AGENDA ITEM NO. 203.2.2

Broad banding of Manufacturing Activity (Addition of new products in unit’s LoA) - Request of M/s. Creative Free Trade Warehousing Pvt. Ltd. (Unit-II), KASEZ.

M/s. Creative Free Trade Warehousing Pvt. Ltd. (Unit-II), KASEZ is an approved unit issued with LoA No.23/2022-23 dated 07.03.2023 issued from F. No. KASEZ/IA/CFTW/04/2022-23 for manufacturing activity, as amended subject to certain terms and conditions enumerated in the aforesaid Letter of Approval. Now, the said unit has requested for broad banding of additional items in their manufacturing activity.

Shri B. S. Shukla, General Manager (Projects) along with Shri Hiren Shah, Manager of the company explained the proposal. Shri Shukla stated that their sister concern M/s Transworld Furtichem Pvt. Ltd., KASEZ working in the Zone is not able to cope with the current demand of the proposed finished goods in their proposal, therefore, they have come up for the broad banding of their existing LoA of M/s. Creative Free Trade Warehousing Pvt. Ltd. (Unit-I), KASEZ.

The Committee asked the unit representative as to whether the unit has intimated the department about the date of commencement of the authorized operations with all details. Shri Shukla submitted that they have submitted the intra zone sale invoice to the department in March 2024 6 ane

. Minutes of the 203 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

Minutes of the 203 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

but yet to provide the remittance payment proof along with entry with request ID on SEZ and status action history as sought by the department. The Committee again asked then why so much delay is occurring. Mr. Shukla submitted that they are finding some technical difficulty in realizing the payment and after getting the same, they will submit the payment details to the department.

The Committee further asked how much area is presently with the unit and how much area will be spared for the green belt as per the GPCB Norms. Shri Shukla explained that their unit is having area of 36,363 Sq Meters and till then they have not finalized the area for the green belt as earlier they were providing warehousing service activity and after getting the approval of the broad banding of new products for manufacturing activity, they will mark the area for green belt.

The Committee also noted that Letter of Approval of unit has already expired on 06.03.2024 and unit is yet to submit the details of the date of commencement of the authorized operations and unit also not submitted the complete project complying with the GPCB norms in that scenario proposal of the unit cannot be considered as the unit is found in violation of the conditions of the Letter of Approval and statutory provision of the SEZ Act and laws.

GPCB norms in that scenario proposal of the unit cannot be considered as the unit is found in violation of the conditions of the Letter of Approval and statutory provision of the SEZ Act and laws.

The Approval Committee after due deliberation decided to reject their proposal as unit has to get commencement of operation and renewal of their LoA. Upon completion of all the activities, unit may submit fresh complete proposal incorporating all details.

AGENDA ITEM NO. 203.2.3

Broad banding of Manufacturing Activity (Addition of new products in unit’s LoA) — Request of M/s. Dyna Glycols Pvt. Ltd., KASEZ.

M/s. Dyna Glycols Pvt. Ltd., KASEZ, Gandhidham is an approved unit with LoA dated 31.05.2006 issued from F. No. KASEZ/1IA/07/2006-07/1131 for manufacturing activity, as amended subject to certain terms and conditions enumerated in the aforesaid Letter of Approval.

Now the said unit has requested for addition of two new finished products i.e. NP Resin 568 with HSN Code 39094030and TOL-16621 with HSN Code 39094090.

Shri Rajeev Singh, Plant Manager of the company explained the proposal. Shri Singh stated that proposed finished products are Non Hazardous and said products are similar to other products being manufactured by them. He further submitted that NP Resin 568 which is Nonyl Phenol-formaldehyde-based resin and it is primarily used as deemulsifier formulation for oil field application. Further, TOL-16621 is 7 \

Minutes of the 203™¢ Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

Ethoxylated Nonyl Phenol-formaldehyde based resin and it is primarily used as de-emulsifier formulation for oil field application. The Approval Committee after due deliberation decided to approve the proposal for addition of two new finished goods under manufacturing activity in their existing LoA subject to the standard terms and conditions: -

ttee after due deliberation decided to approve the proposal for addition of two new finished goods under manufacturing activity in their existing LoA subject to the standard terms and conditions: -

i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) None of the items which are restricted or prohibited will be allowed to be manufactured/imported and any restrictions on import/export of any items will apply unless specifically permitted by the UAC.
ili) 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.
1. The above permission is also subject to further condition that the unit shall maintain separate accounts for Manufacturing, trading & warehousing activity and earmark separate space with clear cut physical demarcation for all the activities with provisions of CCTV & other equipments.
v) Further, the unit will submit separate APRs for each of their Manufacturing, trading & warehousing activities.
vi) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.
vii) Further, the unit will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.

e undertaking of such activities.

vii) Further, the unit will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.
viii) Further, the unit will give an undertaking that none of the 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. 203.2.4

Addition of items under the Trading Activity in their existing LoA - Request of M/s Hitex Healthcare Pvt. Ltd., KASEZ. M/s. Hitex Healthcare Pvt. Ltd, KASEZ is an approved unit for manufacturing activity of Surgical Gowns/apparels etc. in Kandla Special Economic Zone vide LoA No. KASEZ/IA/020/2016-17 dated 01.03.2017, as amended. Their LoA was further broad-banded vide this office letter dated 02.03.2022 for addition of Trading activity for O01 item. 8 mM

. Minutes of the 203™4 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

Now, the said unit has requested for addition of items in their trading activity in their existing LoA.

Shri Subodh Sharma, Plant Manager, Shri Mohit Shah, Manager (Planning & Exports) and Shri Mohit Shah, Authorised Representative of the company explained their proposal. Shri Shah informed that they are in manufacturing of medical devices field and now their clients have requested to give them semi-finished raw materials along with manufactured goods as there are variations in colour and size of the materials and the materials in roll form will be sent to the buyer for further sterilization process at their end and hence they have requested for addition of some HS codes in trading activity.

the materials and the materials in roll form will be sent to the buyer for further sterilization process at their end and hence they have requested for addition of some HS codes in trading activity. The Committee noted that unit came with same proposal in the 197% UAC where the proposal was deferred by the UAC and in that proposal some items were mentioned with different HSN Code and this time HSN Code of the same has been changed.

The Committee enquired from the authorized representative about the change in the HSN Code. Authorized representative submitted that they are finding the difficulty in the HSN Code at the time of import and export. As during the time of import and export, HSN differs as per the customs norms. Shri Rahul Singh, Jt. DGFT asked how this problem can be occurred as HSN Code at the time of import and export of the same product will remain the same.

The Committee further enquired that unit was directed by the 197% UAC to submit the other HSN Code for the item i.e Spunbond as the HSN Code mentioned i.e. 56031100 is not valid but still unit has not changed the HSN Code and submitted the invalid HSN Code.

Authorised representative submitted that same HSN Code is valid and they are not finding the other HSN Code for the same product. Then Shri Rahul Singh, Jt. DGFT explained that same HSN Code has already been merged, therefore, the same HSN Code is not valid.

The Committee also noted that other HSN Code for other products are also not correctly mentioned.

explained that same HSN Code has already been merged, therefore, the same HSN Code is not valid.

The Committee also noted that other HSN Code for other products are also not correctly mentioned.

Therefore, the Approval Committee after due deliberation decided to defer their proposal with direction to the unit to submit clarification with regard to change of the HSN code as proposed in the 197% UAC and this UAC and to revisit and check the HSN Codes of all the products and submit the corrected and exact ITC HS Code for the proposed items.

. aw

Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

AGENDA ITEM NO. 203.2.5

Request of M/s Meso Private Limited, KASEZ for Broad Banding of their LoA for inclusion of 05 items in their Trading activity.

M/s Meso Private Limited is an approved unit for manufacturing of perfumes & Toilet waters, Beauty & make up preparations etc. and trading activity of Talcum Powder, Perfume Deodorant, Air fresheners etc. vide LoA No. KFTZ/IA/ 1667(A)/96 dated 06.03.1997, as amended. Now, the said unit has requested for addition of items in their Trading activity LOA.

their Shri Vivek Milak, Authorised Representative of the company explained of proposal. Shri Milak stated that they are in KASEZ for manufacturing perfumery products and are making 100% exports of their finished goods and also trading items with no DTA sales and now they have received inquiry for trading of cosmetics and toiletry products for export purpose.

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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. This clause will have overriding effect for any approval granted in LoA now or before.

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) In case of any discrepancy/mismatch between the above ‘Description of Goods’ as provided by the Unit & Description of
iil) Further,goods as perno DGFTDTA Importsale is Policy’,allowedtheforlaterthe willa p revail.proved traded items.
iv) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
v) The above permission is also subject to further condition that the unit shall maintain separate accounts for manufacturing and trading and earmark separate space for both the activities.
vi) Further, the unit will submit separate APRs for their manufacturing and trading activity.
vii) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.
viii) Further, the unit will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA. 10 yy

. Minutes of the 203" Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

inutes of the 203" Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

ix) Further, the unit will give an undertaking that none of the 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 may be initiated against them.

AGENDA ITEM NO. 203.2.6

Addition of new items in their LoA for Trading Activity - Request of M/s. Star World, KASEZ.

M/s. Star World, KASEZ is an approved unit for Trading and Warehousing service activity in Kandla Special Economic Zone vide Letter of Approval No. KASEZ/IA/17/2022-23 dated 28.11.2022, as amended. Now, the said unit has requested for addition of new items in their LoA for Trading activity.

Shri Zamir Dosani, Authorised Representative of the firm explained their proposal. Shri Dosani stated that they wish to add new items for trading activity in their existing LoA. He further stated that they receiving inquiry from African countries for stationery items and textile products and most of the items proposed for trading activity will be exported to African countries and they will also undertake intra-zone of stationery items.

The Committee asked the representative of the firm about the transactions done by them in KASEZ since issuance of LoA. In reply, Shri Dosani stated that they have commenced their authorised activity a year back and have 1 export consignment of plastic powder and 3 other items till commencement of their authorised activity.

The Committee further asked the representative of the firm as to whether they have done market survey of the items proposed for trading activity and whether they have confirmed export orders for the same. In reply, Shri Dosani stated that the proprietor of the firm is in Africa and they have received inquiry from their clients and they will also submit the purchase orders received from their clients.

n reply, Shri Dosani stated that the proprietor of the firm is in Africa and they have received inquiry from their clients and they will also submit the purchase orders received from their clients.

The Committee asked the representative of the firm to start with stationery items subject to the condition that no intra-zone sales (zone to zone transfers) of stationery items will be permitted.

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The Approval Committee after due deliberation decided to approve the proposal for addition of items in trading activity except items at Sr. No. 1 to 5 of the proposal/Agenda in their existing LoA subject to the unit submitting confirmed purchase orders from their clients. The approval shall also be subject to the following standard terms and conditions:

Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

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. This clause will have overriding effect for any approval granted in LoA now or before.
1. 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.

ow or before.

1. 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.
1. Further, the import of items at Sr. No. 2proposed for trading activity will be allowed for un-branded items only and no branded items will be allowed to be imported.
iv) Further, no DTA sale and intra-zone sales (zone to zone transfer) is allowed for the approved traded items.
v) Further, the items will be subjected to the Policy Conditions vi) Thespecifiedabovein DGFT’permis s ion ITC HSis als C o desubject whereverto furtherapplicable.condition that the unit shall maintain separate accounts for trading and warehousing and earmark separate space for both the activities.
vil) Further, the unit will submit separate APRs for their trading and warehousing activity.
viii) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from
ix) concernedFurther, the agenciesunit willbeforeensure undertakingthe compliance of such activities.of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.
Xx) Further, the unit will give an undertaking that none of the 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 may be initiated against them.

AGENDA ITEM NO. 203.2.7

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. Further, their LoA was broad banded for manufacturing activity of 2 items i.e. (1) Synthetic White Vinegar Edible and (2) Refined Free Flow Iodised Salt in packaged form vide letter dated 23.05.2022.

Now, the said unit has requested for addition of new items in their LoA for Trading and Warehousing service activity.

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, Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

Shri Balaji Naidu, Director of the company explained the proposal. Shri Naidu stated that they are in KASEZ since last more than 3 years engaged in manufacturing, trading & warehousing activity and are exporting 10-15 containers monthly. Now, they propose to include Palm Oil & Fuel Oil in their manufacturing activity to further expand the business.

acturing, trading & warehousing activity and are exporting 10-15 containers monthly. Now, they propose to include Palm Oil & Fuel Oil in their manufacturing activity to further expand the business.

The Committee noted that the proposal submitted by the unit is for addition of items in trading and warehousing activity and not manufacturing activity as contended by the Director and asked the Director as to whether they want to include items in trading & warehousing or manufacturing. In reply, Shri Naidu regretted before the Committee members for submitting wrong proposal and requested for withdrawal of the present proposal.

The Approval Committee after due deliberation decided to withdraw/cancel the present proposal of trading & warehousing and directed the unit to submit fresh proposal for manufacturing activity as explained by the Director before the Committee.

203.3 MISCELLANEOUS ITEMS

AGENDA ITEM NO. 203.3.1 Intimation for change in the constitution from Partnership firm to Private Limited Company - Request of M/s AVB International, KASEZ

M/s AVB International, Unit No.107,308 & 309, SF, Ganga SDF Complex, Kandla Special Economic Zone, Gandhidham-370230 is an approved unit for Manufacturing activity of Pan Masala, Khaini, Zarda and Guthka vide LoA No.22/2016-17 dated 27.02.2017 as amended from time to time. Now, the said unit has requested for change in the constitution of the firm from Partnership to Private Limited their unit from M/s AVB International to M/s AVB International PRIVATE LIMITED and have submitted copy of Memorandum of Association and Article of Association, copy of PAN and Aadhar of Director, Business Transfer Agreement, Indemnity Bond, Income Tax return of the Director alongwith their application.

Shri Satyam Bihani, Partner of the firm appeared before the Committee to explain the proposal. Shri Bihani stated that they have changed the constitution of the firm from partnership to private limited company for tax management purpose. The Committee further 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 13 arrangements, court approved mergers and v change of

Minutes of the 203" Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

inutes of the 203" Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

constitution, wherein the change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC).

Therefore, the Approval Committee after due deliberation decided to approve and take on record the proposal of change in name of the firm from “AVB International” to “AVB International Private Limited” and change in constitution from partnership firm to private limited company subject to submission of an Affidavit/Undertaking that no Customs/DRI and any other Govt. Department case is booked against the unit and 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/Constitution to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 203.3.2 Intimation of change in Directors of the company - Request of M/s. Baccarose Perfumers & Beauty Products Pvt Ltd, KASEZ.

M/s. Baccarose Perfumers & Beauty Products Pvt Ltd., KASEZ, is an approved unit with LoA No. 8/18/84-FTZ dated 18.12.1984, for Manufacturing and Trading Activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended.

n approved unit with LoA No. 8/18/84-FTZ dated 18.12.1984, for Manufacturing and Trading Activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended.

Now the said unit has intimated about the change in Board of Directors of the company wherein two new Directors have been appointed in the company and three earlier directors have been retired. The unit has submitted copy of DIR-12 containing particulars of changes among the directors.

Shri Vijay Hedge, Admin Manager of the company explained the proposal. The Committee enquired where are the newly appointed directors, why they have not come before the Committee even in that case where whole directors are being changed and two new directors are coming. Authorized representative was unable to explain the reason of non-absence of their new directors. The Committee also asked the reason of director change but Mr. Hedge could not provide any reply to this.

Therefore, the Approval Committee after due deliberation decided to defer their proposal regarding change in Directors and directed unit to give the proper reason of director change with past record of director change and presence of new directors before the UAC explaining the proposal.

. Minutes of the 203 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

Subject: Intimation of change in Partnership of M/s. Commodities Trading (SEZ Warehousing Division), KASEZ.

M/s. Commodities Trading (SEZ Warehousing Division), KASEZ is an approved unit issued with LoA No. 007/2013-14 dated 19.08.2013, for warehousing service activity and Trading Activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended.

Now, the said unit has intimated regarding change in partners of the firm wherein one Partner has retired from the firm and two new Partners have joined the firm and submitted copy of Supplementary Deed of Admission cum Retirement Partnership Deed dated 26.03.2024 and also submitted copy of Form-G issued from Registrar of Firms regarding change in partnership deed.

Shri Devender Bansal, Partner of the firm appeared before the Committee to explain the proposal. Shri Bansal stated that due to ill-health of her mother they have retired her and his wife & son has been inducted as new Partners in the firm and requested to take the change of partners in record. 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, wherein the change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC).

ng pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, wherein the 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 partnership of the firm subject to submission of Indemnity bond &subject to submission of an Affidavit/Undertaking that no Customs/DRI and any other Govt. Department case is booked against the unit and 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/partnership to the Income Tax Department for necessary action at their end. at

s under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone. AGENDA ITEM NO. 203.3.4 Intimation for change in Partnership of M/s. JMBM Warehousing., KASEZ.

M/s. JMBM Warehousing, KASEZ is an approved unit with LoA dated 09.12.2020 issued from F. No. KASEZ/IA/28/2020-21 for warehousing service activity, Trading Activity and Manufacturing Activity, as amended. Now, the said unit has intimated regarding change in partnership wherein old partners have retired from the firm and new partners have been inducted in the firm. They have submitted copy of notarized new partnership deed dated 19.11.2022 & copy of “Form-G” issued by Register of Firms and also copy of PAN card, Aadhar card and ITR of the new partners.

Shri. Gulab Gidwani, retiring Partner of the firm appeared before the Committee to explain the proposal. Shri Gidwani informed the Committee that he is moving with his family to Ahmedabad, therefore he has sold his unit to new partners on receiving the financial consideration of Rs.8 lakhs.

The Committee asked what is the Net Worth of the unit i.e. M/s. JMBM Warehousing and why so much nominal amount is being paid to you. In reply, Shri Gulab submitted that there is no much value of the company as they have got the Govt. Shed and they have not built up anything there, therefore no such investment has been made by them in the unit.

Gulab submitted that there is no much value of the company as they have got the Govt. Shed and they have not built up anything there, therefore no such investment has been made by them in the unit.

The Committee further enquired that they are having also the manufacturing permission and in that case they must have made the investment in the capital goods. Mr. Gulab replied they have just purchased a machine of worth Rs.25,000/- which was used for making towel. The Committee also noted that this change of the partnership is nothing but the sale. Company owner has not made any single effort in setting up and working the manufacturing plant and which clearly not serves the purpose of Section 5 of the SEZ Act, 2005. Committee further noted that if the company owner is not finding the business fruitful here and not in the position to serve the purpose of Section 5 of the SEZ Act, 2005 then in this scenario owner of the company should surrender the LoA to the department so that same should be allotted to the other interested and hardworking business man who can bring the business, employment, export and foreign exchange in India.

Therefore, the Approval Committee after due deliberation decided to defer their proposal regarding change in Partners with direction to the unit to surrender the Letter of Approval to the department if they are unable to restart their authorized operations within 6 months period as the premises occupied by the unit is Govt. built shed. The UAC also directed DC office to verify the NFE of the unit and take necessary action as per SEZ Rule.

operations within 6 months period as the premises occupied by the unit is Govt. built shed. The UAC also directed DC office to verify the NFE of the unit and take necessary action as per SEZ Rule.

. Minutes of the 203 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

AGENDA ITEM NO. 203.3.5 Request of M/s. Om Siddh Vinayak Impex Pvt. Ltd., KASEZ for change in Directors and shareholding pattern of the company.

M/s. Om Siddh Vinayak Impex Pvt. Ltd., KASEZ is an approved unit with LoA No. KASEZ/IA/1860/2001-02/10043 dated 30.01.2002, for processing of Worn & Used Clothing subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended.

Now, the unit has intimated regarding change in Directorship of the company wherein one Director has resigned from the Board of Directors and one new Director has been appointed as Director of the company. They have submitted copies of Form No. DIR-12 of ROC regarding appointment and resignation of Directors and also earlier shareholding pattern and present shareholding pattern of the company and also Chartered Certificate dated 07.02.2024 regarding current shareholding pattern of the company.

Shri. Shivanand, Accounts Manager along with Shri Vikas Jain, Director being inducted of the firm appeared before the Committee to explain the proposal. Shri Vikas stated that he has been inducted as Director in the company and he and his mother has taken over 40.85& shares of the company and they have made consideration of Rs. 50 lakhs each by both the shareholders.

hat he has been inducted as Director in the company and he and his mother has taken over 40.85& shares of the company and they have made consideration of Rs. 50 lakhs each by both the shareholders.

The Committee perused the ITRs and net worth certificate of the new Director and noticed that there is inconsistency between the ITR and net worth certificate as the ITR of the new Directors shows only nominal income whereas the net worth has been shown on the higher side. The Committee directed the Income Tax member to check the inconsistency between the ITR and net worth of the new Director and submit his report to the Committee to take further decision in the matter.

Therefore, the Approval Committee after due deliberation decided to defer their proposal regarding change in Directors and shareholding pattern of the company with direction to the DC office to forward the documents submitted by the unit to the member Income Tax Department for scrutiny of the documents submitted by the unit and submit its report for further deliberation in the Committee meeting.

AGENDA ITEM NO. 203.3.6 Intimation for change in constitution from Proprietorship to Partnership of M/s. Premier Global Products, KASEZ.

M/s. Premier Global Products, is an approved unit for manufacturing unit for mixed, condiments & mixed seasonings, spices mix, crushed pepper powder, etc. and trading activity and warehousing service activity in KASEZ Wy

Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

vide Letter of Approval No. 06/2021-22 dated 30.06.2021 issued vide F.No. KASEZ/IA/06/2021-22, as amended.

Now, the said unit has intimated regarding change in constitution from proprietorship to partnership and submitted copy of notarized partnership deed dated 09.05.2024 alongwith their application and also PAN of all the partners and new PAN of the firm. Further, the unit has also submitted copy of Form-G issued from Registrar of Firms, Kachchh District, Gandhidham regarding constitution of partnership firm and also submitted Income Tax Returns of the new Partners, Balance sheet of the firm, Import Export data sheet, IEC of the firm &details of financial consideration made by the incoming partners along with Chartered Accountants certificate dated 18.05.2024 for total consideration amount of the partnership firm.

C of the firm &details of financial consideration made by the incoming partners along with Chartered Accountants certificate dated 18.05.2024 for total consideration amount of the partnership firm.

Shri Shri K. M. Mathew, Authorised Representative of the firm along with Aman Jaiswal, Partner being inducted in the firm appeared before the Committee to explain the proposal. Shri Mathew stated that for better management of the firm they have inducted two partners and converted the proprietorship into partnership firm and requested to take the change in constitution of proprietorship firm into partnership firm in records.

The Committee asked Shri Jaiswal as to whether he is aware of present activity being undertaken in the unit wherein he has been inducted as partner. In reply, Shri Jaiswal stated that the unit in KASEZ is indulged in dry fruit mix & spices mix and are exporting to UAE, USA, Indonesia, etc. The Committee noted that the unit has submitted ITR of one partner only for AY 2024-25 and not submitted ITR for the AY 2021-22 to 2023-24 and directed the unit representative to submit the ITR for the 3 years AY 2021-22 to 2023-24 of the new partner. The Committee further 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, wherein the change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC).

ng pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, wherein the change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC). Therefore, the Approval Committee after due deliberation decided to approve and take on record the proposal of change in constitution from proprietorship firm to partnership firm subject to submission of an Affidavit/Undertaking that no Customs/DRI and any other Govt. Department case is booked against the unit and fulfilment of conditions as stipulated vide Instruction No. 109 dated 18.10.2021.

a 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. 203.3.7 Intimation for change in constitution from Proprietorship to Partnership of M/s. Shreeji Polymers (Unit-I), KASEZ.

e Income Tax Department for necessary action at their end. AGENDA ITEM NO. 203.3.7 Intimation for change in constitution from Proprietorship to Partnership of M/s. Shreeji Polymers (Unit-I), KASEZ.

M/s. Shreeji Polymers (Unit-I), KASEZ is an approved unit for manufacturing of Recycling of LDPE/HDPE Scrap in to granules, Agglomerates & Lumps etc. in Kandla Special Economic Zone vide Letter of Approval No. KFTZ/IA/1705(A)/97/10787 dated 09-02-1998, as amended. Now, the said unit has intimated regarding change in constitution from proprietorship to partnership and submitted copy of notarized partnership deed dated 03.06.2024 alongwith their application and also copy of PAN and Aadhar of both the partners, Income Tax Returns, Net worth certificates of both the Partners, Ledger Account & Bank Statement of Shreeji Polymers (Unit-I) showing the details of financial consideration made by the incoming partner, Ledger Account & Bank Statement of new partner showing the details of financial consideration made in the firm, Affidavit/Undertaking regarding no DRI/Customs case booked against the firm, Indemnity bond and PAN of the new partnership firm. Further, the unit has also submitted Business Transfer Agreement and copy of Form-G issued from Registrar of Firms, Kachchh District, Gandhidham regarding constitution of partnership firm.

ip firm. Further, the unit has also submitted Business Transfer Agreement and copy of Form-G issued from Registrar of Firms, Kachchh District, Gandhidham regarding constitution of partnership firm.

Shri Anand Mehta, Authorised Representative of the firm along with Shri Jeetendra Jain, Partner being inducted in the firm appeared before the Committee to explain the proposal. Shri Mehta stated that the Proprietor of the firm is having two units in KASEZ Unit - I & Unit — II and he has decided to convert the Unit-I into partnership firm wherein he has inducted one new partner in the firm and requested to take the change in constitution of proprietorship firm into partnership firm in records.

The Committee perused the ITRs and net worth certificate of the proprietor of the firm and noticed that though the ITRs of the proprietor are on the higher side however the net worth of the proprietor is lesser and asked the unit representative about the inconsistency between the ITRs and net worth certificate submitted. In reply, Shri Mehta stated that they have submitted net worth certificate of the proprietor for Unit-I only and not his whole business. The Committee directed the unit representative to submit the net worth of the proprietor taking into consideration the entire business of the proprietor.

The Committee further noted that Department of Commerce vide Instruction No. 109 dated 18.10.2021 has issued guidelines regarding As

into consideration the entire business of the proprietor.

The Committee further noted that Department of Commerce vide Instruction No. 109 dated 18.10.2021 has issued guidelines regarding As

Minutes of the 203' Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

eee change of name, change of shareholding pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, wherein the change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC). Therefore, the Approval Committee after due deliberation decided to approve and 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 Name/Constitution to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 203.3.8

Permission to warehouse goods on behalf of DTA/Foreign Clients - Request of M/s. Naman Marketing, a unit for warehousing activity, KASEZ.

The Committee noted that M/s. Naman Marketing, KASEZ has requested for permission for warehousing activity of additional items. Shri Shri Kamlesh Patel, Proprietor of the firm explained their proposal. of additionalPatel inforite m s.ed that they have requested for permission for warehousing The Committee noted that the items proposed at Sr. No. 4 of their proposal is exhaustive and directed the proprietor to submit specific list of items proposed at Sr. No. 4. In reply, Shri Patel stated that at Sr. No. 4 he requires only one item falling under ITC HS 87116010 and requested to approved one item only at Sr. No. 4.

items The Committee noted that the item proposed at Sr. No. 1 is plastic and the same are not being allowed for trading and warehousing as uniform policy is being adopted by the UAC.

The Committee after due deliberation decided to permit the additional items to be warehoused by the above unit on behalf of DTA/ Foreign clients as submitted by the unit except at Sr. No. 1 of their proposal, subject to submission of specific list of items for Sr. No. 04, to the unit fulfilling NFE criterion and submission of KYC & ITR of last 3 years 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.

Minutes of the 203 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, 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.
ili) Further, with respect to warehousing of items for human consumption/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.
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 unit will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LOA.

re undertaking of such activities.

vi) Further, the unit will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LOA.
vii) | Further, the unit will give an undertaking that none of the 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. 203.3.9 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. (UnitIl), KASEZ has requested for permission to warehouse additional items on behalf of Foreign/DTA clients.

Shri Sharad Shetty, Director of the company explained their proposal. Shri Shetty informed that they are having two LoA one for lubricants & mining ropes in trading activity and lubricants & porcelain products in warehousing activity and now they propose to warehouse more porcelain products in warehousing activity on behalf of their clients for exports to Brazil, Mexico, etc.

The Committee after due deliberation decided to permit the additional 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 criterion and submission of ITR of last 3 years of their clients on whose behalf they will warehouse goods and also subject to following conditions:

i) None of the items which are restricted or prohibited will be 21 allowed to be warehoused and anyhy import/export

Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

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.

missioner, Kandla Special Economic Zone.

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 items will be subjected to the Policy Conditions ili) Inspecifiedcase of inany DGFT’sdiscrepancy/mismatch ITC HS Code whereverbetween applicable.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 unit will ensure the compliance of all guidelines, policies issued by any Ministry from time to time pertaining to the items approved in LoA.
vi) Further, the unit will give an undertaking that none of the 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. 203.3.10 Request for merger of two LoAs - Request of M/s S. R. Warehousing & Trading Co., KASEZ.

M/s. S. R. Warehousing & Trading Co., KASEZ vide letter dated 14.06.2024 has made a request for merger of two LoAs of M/s. S. R. Warehousing & Trading Co. under third proviso to Rule 19(2) of the SEZ Rules, 2006. for In this regard, the unit have submitted that they are holding 2 LoAs providing warehousing services in Kandla SEZ as their authorized operation. The details of LoAs issued are as under: -

(a) LoA No. KASEZ/IA/012/2011-12/3181 dated 17.06.2011 in the name of M/s. S. R. Warehousing & Trading Co. (Unit-II) valid upto 19.06.2026.

(b) LoA No. KASEZ/IA/044/2010-11/2352 dated 05.01.2011 in the name of M/s. S. R. Warehousing & Trading Co. (Unit-I) valid upto 30.11.2028.

The unit has also submitted that they are having common GST registration, PAN, Bank Account for both Unit-I & Unit-II and also filing common ITR for both units. Now, for the sake of convenience and ease of business they wish to merge Unit-I into Unit-II as per proviso to Rule 19(2) of the SEZ Rules, 2006.

Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

inutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

Shri Ramesh Shah, Partner of the firm explained their proposal. Shri Shah informed that they are having two units in KASEZ in the same name and now they want to merge their Unit-I into Unit-II and requested to approve their request as per proviso to Rule 19(2) of the SEZ Rules, 2006.

The Committee asked the partner of the firm the reasons for merger of their two LoAs now as the LoAs of both their units were issued in 2011. In reply, Shri Shah stated that they have to make the request for Unit-I and Unit-II separately for renewal, separate APRs for both units and now for ease of doing business they have decided to merge their LoA of Unit-I into Unit-II.

The Committee noted that the fourth proviso to Rule 19(2) of the SEZ Rules, 2006 stipulates that the Approval Committee may also approve proposals for merger of Letters of Approval of two or more units of the same company or firm subject to the condition that these Units fall within the same Special Economic Zone and after merger, block period for calculation of Net Foreign Exchange shall be from the date of commencement of production of the Unit which commenced operation first and the Income Tax exemption period shall be considered from the date of start of operation of the first Unit.

rom the date of commencement of production of the Unit which commenced operation first and the Income Tax exemption period shall be considered from the date of start of operation of the first Unit.

The Committee further noted that both Unit-I and Unit-II are working in KASEZ and fourth proviso to Rule 19(2) of the SEZ Rules, 2006 empowers Approval Committee to approve proposals for merger of Letters of Approval of two or more units of the same company or firm subject to the condition that these Units fall within the same Special Economic Zone.

Therefore, the Approval Committee after due deliberation approved their proposal for merger of LoA of Unit-I into Unit-II under the fourth proviso to Rule 19(2) of SEZ Rules, 2006, subject to fulfilment of all the requirements prescribed thereof.

AGENDA ITEM NO. 203.3.11

Request of domestic procurement of goods under ITC 0713 — Request of M/s. Milak Warehouse, KASEZ.

M/s Milak Warehouse, KASEZ is an approved unit with LoA No. 1836/2001-02 dated 10.08.2001, as amended, for Trading, Manufacturing and Warehousing service activity etc., subject to certain terms and conditions enumerated in the aforesaid Letter of Approval. The Committee noted that the unit submitted that for ITC HSN 0713 they already hold approval for trading and warehousing and now requested for the approval of domestic procurement. The said proposal was taken up in the 201 UAC held on 24.04.2024 wherein Committee noted that the items falling under ITCHS 0713 are subject to policy conditions in the FTP and

a’

Minutes of the 203 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

directed the DC office to further examine the same as to whether the DTA procurement can be permitted or otherwise.

The Committee further noted that the DC office has examined the request of the unit and after proper examination on the legitimate grounds, it was found that the request of the unit can be considered.

Therefore, the Approval Committee after due deliberation decided to permit domestic procurement of items falling under ITC HS 0713 for trading and warehousing activity, however, the said domestic procurement will be subject to the policy conditions in the FTP as amended from time to time. AGENDA ITEM NO. 203.3.12 Whether rental income collected by M/s Adinath Warehouse Co., KASEZ from the service recipient to whom premises was given on subletting for the un-authorized operations, is eligible/valid for the computation of NFE (Net Foreign Exchange) or otherwise as per SEZ Act & Rules.

M/s. Adinath Warehousing Co., KASEZ is an approved unit with LoA No. for warehousing activity, as amended, subject to certain terms and conditions enumerated in the aforesaid Letter of Approval.

The Committee was informed that DC office had issued Show Cause Notice to the unit for sub-letting its premises to M/s Tex Poly Impex wherein storage of old and used clothes and manufacturing activity was being carried out and same is yet to be adjudicated.

use Notice to the unit for sub-letting its premises to M/s Tex Poly Impex wherein storage of old and used clothes and manufacturing activity was being carried out and same is yet to be adjudicated.

the Further, on the subject matter that “whether rental income collected by M/s Adinath Warehouse Co., KASEZ from the service recipient to whom premises was given on sub-letting for the un-authorized operations, is eligible/valid for the computation of NFE(Net Foreign Exchange) or otherwise as per SEZ Act & Rules”, a Committee of 3 officers was constituted by the DC Office, KASEZ to examine the matter.

Now, the Committee constituted vide their report dated 03.06.2024 has submitted their findings which are mentioned below: -

The Committee has submitted that on plain reading of the Rule 53 of SEZ Rules, 2006 it is seen that rental income collected by the M/s Adinath Warehousing Co., KASEZ from the service recipient to whom premises were sublet for unauthorized operations does not appear to be explicitly covered under any of the provisions listed in Rule 53(a) to (k) of the SEZ Rules,2006. Therefore, prima facie, it seems that NFE collected from subletting for unauthorized operations may not be eligible for inclusion in the computation of NFE. 24 SS

3(a) to (k) of the SEZ Rules,2006. Therefore, prima facie, it seems that NFE collected from subletting for unauthorized operations may not be eligible for inclusion in the computation of NFE. 24 SS

Minutes of the 203 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone. OO Further, the Committee submitted that to eliminate any ambiguity and definitively ascertain the eligibility of rental income for inclusion in NFE computation from sub letting for un-authorized operations, it is recommended that a reference may be made to the Ministry/DGFT for necessary guidance and directions.

The Approval Committee deliberated on the issue and decided that sub-letting for un-authorised operations cannot be considered for NFE computation and directed the DC office to re-compute the NFE of the said unit and also other such similar units who have sub-letted their premises and if the units are found not achieving positive NFE as per Rule 53 of the SEZ Rules, 2006, action may be initiated against the erring units as per provisions of the SEZ Act, 2005 and SEZ Rules, 2006.

AGENDA ITEM NO. 203.3.13 Monitoring of ANNUAL PERFORMANCE REPORT (APR) for the Financial Year 2020-21, as per provisions of Rule 54 of SEZ Rules, 2006 As per Rule 54 of the SEZ Rules, 2006, the performance of the units shall be monitored by the Approval Committee as per the guidelines given under Annexure appended to these rules.

SEZ Rules, 2006 As per Rule 54 of the SEZ Rules, 2006, the performance of the units shall be monitored by the Approval Committee as per the guidelines given under Annexure appended to these rules.

The Committee perused the status, in respect of 281 units placed before them. The Committee noted out of 281 working units, 261 units have submitted APRs and 20 units have not submitted APRs for the year 202021. Further, out of 261 units who have submitted APRs, 38 units have failed to achieve positive Net Foreign Exchange Earnings and out of 38 units who have failed to achieve positive NFE, 14 units have failed to achieve positive NFE in their 1st& 224 year of their 5 year block period; 23 units have failed to achieve positive NFE in 3'¢ and 4% year of their 5 year block period and 1 unit have failed to achieve positive NFE in 5 year of their 5 year block period.

The Committee noted that in respect of the NFE negative cases at the end of 5t year of their 5 year block period that SCN have already been issued in respect of 1 unit and adjudication has also been completed.

tee noted that in respect of the NFE negative cases at the end of 5t year of their 5 year block period that SCN have already been issued in respect of 1 unit and adjudication has also been completed. The Committee also noted that in respect of the NFE negative cases at the end of 3rd& 4th year of their 5 year block period, out of the 23 units — (1) 4 units have achieved positive NFE at the end of five-year block period, (2) 3 units have been issued SCN at the end of five-year block period and adjudication has also been done, (3) 14 units of worn/used clothing units & plastic recycling units, it was decided not to initiate penal action against them as their LoAs were renewed in piece-meal basis from 01.12.2018 till 2021-22, and the renewal of LoA for 5 years in respect of worn/used clothing unit was

Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

from 01.07.2021 to 30.06.2026 and in respect of plastic recycling unit was from 27.08.2022 to 26.08.2027. Hence, the Committee decided to issue SCN only to 2 units who have failed to achieve positive NFE in the 3'4 year of their 5 year block period.

After due deliberation, the Approval Committee directed the DC’s office to take following actions as under: -

To issue SCN to 2 units who have failed to achieve positive NFE in 3dyear of their 5 year block period.

n, the Approval Committee directed the DC’s office to take following actions as under: -

To issue SCN to 2 units who have failed to achieve positive NFE in 3dyear of their 5 year block period.
To place the 14 units who failed to achieve positive NFE in their 1st®& 2nd year of their 5 year block period under the watch list as per monitoring guidelines.
UAC decided that non-submission of APRs despite repeated reminder even after lapse of more than two and half years beyond the time period of submission of APRs is violation of BLUT condition and also of Rule 22 of SEZ Rules, 2006. Therefore, UAC decided to issue SCN to these 20 erring units for imposition of penalty under FT (D&R) Act, 1992 read with Rule 54 of SEZ Rules, 2006.
The Committee also noticed that there were delays in filing of APRs by the KASEZ units within the stipulated time period as pointed out by the Auditor and decided that henceforth two months grace period beyond the stipulated time period may be given to the KASEZ units for submission of APRs and if any unit does not submit the APR by the two months grace period granted, then a penalty of Rs. 500/- per day may be levied from the unit till the date the unit submits their APR for the particular Financial Year.

TABLE AGENDA ITEM NO. 203.4.1 Broad-banding of Manufacturing Activity (Addition of new products in unit’s LoA) - Request of M/s. Kutch Polymers, KASEZ.

All M/s Kutch Polymers, KASEZ is an approved unit for manufacturing of types of reprocessed plastic raw material in granules, Agglomerates, shredding, grinding pieces, crushing chips form, lumps and chunks, etc. in Kandla Special Economic Zone vide Letter of Approval No. FTZ/IA/1689/97/10487 dated 27.01.1998, as amended. The request of M/s. Kutch Polymers, KASEZ for Broad-banding of Manufacturing Activity (Addition of new products in unit’s LoA) was placed before 201SUAC meeting held on 24.04.2024 and the UAC after due deliberation decided to reject their proposal for broad-banding of 26 A

ee Minutes of the 203 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

manufacturing activity (addition of new products in unit’s LoA) as the same does not comes under the purview of UAC as per Rule 18(4A) (a) of the SEZ Rules, 2006 (inserted w.e.f. 21.09.2018).

Now, M/s. Kutch Polymers, KASEZ has requested for re-consideration of decision taken in 201st UAC meeting held on 24.04.2024 with regard to their proposal of broad-banding of their LoA for manufacturing of plastic powder, tubes, films, etc. as value added products.

f decision taken in 201st UAC meeting held on 24.04.2024 with regard to their proposal of broad-banding of their LoA for manufacturing of plastic powder, tubes, films, etc. as value added products.

Shri Ankesh Gupta, Partner alongwith Shri Ajay Gupta, Authorised Representative of the firm appeared before the Committee to explain the proposal. Shri Ankesh stated that their request is for addition of plastic related products like plastic roto-mould powder, films, etc. which are value added products in their existing LoA. He further stated that UAC has misinterpreted Rule 18(4A)(a) as they have requested for addition of manufacturing items and not broad-banding of their LoA. He also stated that they are exporting granules, agglomerates, etc. and now the exports of the same are not feasible and hence they have requested for addition of value added products i.e. powders, etc. which has good export market and the same will be manufactured from the agglomerates for which they are already having permission and they will purchase machinery from the local market.

wders, etc. which has good export market and the same will be manufactured from the agglomerates for which they are already having permission and they will purchase machinery from the local market.

Shri Ankesh further stated that vide Instruction No. 69 dated 04.11.2010 MOC&I have intimated that broad-banding and splitting of licence for setting-up of sub-units will not be allowed and all such units shall set up facilities to make products out of plastic waste as earlier the plastic recycling units were exporting un-related products like castor oil, sesame seeds, etc. to fulfil the NFE conditions. He also stated that vide GSR No. 909(E) dated 19.09.2018 Rule 18(4A) was inserted wherein Rule 18(4A) (a) & (c) stipulates that (a) Broad-banding and splitting of license for setting up of sub-units shall not be allowed & (c) All such units shall set up facilities to make products out of plastic waste. Thus, Shri Ankesh argued that they are only requesting for addition of value added manufacturing items and not broad-banding.

The Committee deliberated on the issue of broad-banding of items and addition of items and was of the view that broad-banding or addition of items is one and the same and Rule 18(4A) (a) of the SEZ Rules, 2006 (inserted w.e.f. 21.09.2018) clearly stipulates that for existing plastic or used clothing units in SEZs, broad-banding and splitting of license for setting up of sub-units shall not be allowed and all transactions of a unit shall be regulated through a single bank account. ANY

‘

units in SEZs, broad-banding and splitting of license for setting up of sub-units shall not be allowed and all transactions of a unit shall be regulated through a single bank account. ANY

‘

Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

Therefore, the Committee after due deliberations decided to reject their proposal as the same does not comes under the purview of UAC as per Rule 18(4A) (a) of the SEZ Rules, 2006 (inserted w.e.f. 21.09.2018).

TABLE AGENDA ITEM NO. 203.4.2 Ratification of SCNs and O-I-O issued to Kandla SEZ units

The Committee was briefed on the issue of Show Cause Notices issued and O-I-O issued to the KASEZ units.

||The members of the UAC unanimously agreed on the issues discussed|The members of the UAC unanimously agreed on the issues discussed|The members of the UAC unanimously agreed on the issues discussed|The members of the UAC unanimously agreed on the issues discussed|
|---|---|---|---|---|
|in the|SCNs and O-I-O in view of the contravention made therein.||||
||The Approval Committee ratified||the following Show Cause Notice||
|issued by the||Development Commissioner, KASEZ and authorised||the|
|Development Commissioner, KASEZ to adjudicate the show cause notice|||||
|being|issued.||||
|||Show Cause|Notice| Issue in brief||
|No.||No. & Date|||
|1.|Global|Cups<br>®&/]/KASEZ/IA/17/2008-|<br>For<br>non-achievement||of|
||Consumables Pvt.|09<br>Ltd.<br>10/11.06.2024||dated| positive NFE during the 5<br>year block period ending||
||||2023-24<br>SCN<br>dated||
||||10/11.06.2024<br>issued|to|
||||the unit.||
|PX|Durferrit<br>Pvt. Ltd.|Asea|KASEZ/TA-<br>1/16/2007-08|Late<br>submission<br> dated|application in Form F1|of<br> for|
|||03.06.2024|renewal of their Letter|of|
||||Approval<br>for<br>further|5|
||||earsperiod.||

td.|Asea|KASEZ/TA- 1/16/2007-08|Late submission dated|application in Form F1|of for| |||03.06.2024|renewal of their Letter|of| ||||Approval for further|5| ||||earsperiod.||




```text
||Further,|the Approval Committee|the Approval Committee|ratified<br>the<br>following<br>Order-in-|ratified<br>the<br>following<br>Order-in-|
|---|---|---|---|---|---|
|Original issued||by the Development Commissioner, KASEZ.||||
||Name of|the Unit|||Issue in brief|
|No.|||No. & Date|||
|1.|Aum Impex||KASEZ/06/2024-25 |For<br>non-achievement<br>of|||
||||dated 12.06.2024||positive NFE during the 5|
||||||year block period ending|
||||||2023-24<br>SCN<br>dated|
||||||03/08.05.2024<br>issued<br>to|
||||||the<br>unit<br>and<br>the|
||||||adjudicating authority has|
||||||issued<br>O-I-O<br>imposing|
||||||penalty under Rule 80 of|
||||||the SEZ Rules, 2006.|
||||28||-.|

; Minutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

inutes of the 2034 Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

The Committee also reviewed the renewal of Letter of Approval applications in Form F1 received from the KASEZ units and noticed that units are casual in submitting Form Fl - Letter of Approval Renewal Application Form and Rule 19 (6A)(1) of SEZ Rules, 2006 clearly stipulates that the units which intend to renew the validity of Letter of Approval shall submit, before two months from the date of expiry of the Letter of Approval, the completed application in Form F1 along with requisite document, to the Development Commissioner, duly signed by the proprietor or managing partner or if it is a company, by the Managing Director or the Director(s) or any person who has or have been duly authorised for this purpose by a resolution of the Board of Directors of the company.

tner or if it is a company, by the Managing Director or the Director(s) or any person who has or have been duly authorised for this purpose by a resolution of the Board of Directors of the company.

The Committee further noted that DC office have been imposing penalty of Rs. 1,00,000/if the units submit the renewal request after expiry of LoA date and penalty of Rs. 50,000/- if the units submit renewal request before expiry of LoA but not within the prescribed period i.e. before 60 days expiry of LoA. Instances, have come to the notice of the DC office that units are not submitting renewal application within the stipulated time and in some cases are submitting applications by more than 6 months or 1 year. Therefore, the Approval Committee decided that henceforth, on case to case basis, if application for renewal is received by DC office after expiry of LoA date, then apart from Rs. 1,00,000/- penalty, additional penalty of Rs. 500 per day shall also be imposed from the unit till the date the unit submits their renewal application in Form F1. Further, if the unit does not submit their renewal application after lapse of one year from date of expiry of LoA date, their eviction process may be initiated against such erring units.

The Committee also directed the DC office that the units who have been granted approval in the UAC may be given 3 weeks’ time to submit the requisite documents/undertaking otherwise the approval granted by the UAC will be liable for cancellation.

e units who have been granted approval in the UAC may be given 3 weeks’ time to submit the requisite documents/undertaking otherwise the approval granted by the UAC will be liable for cancellation.

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 cancellation including action under the FT (D&R) Act and necessary action will be taken against such units in terms of applicable provisions of law. 29 ‘ty

Minutes of the 203' Unit Approval Committee Meeting of Kandla SEZ held on 28.06.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone.

The meeting ended with a vote of thanks to the Chair.

NI. Development Commissioner Kandla Special Economic Zone

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