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Minutes of the 207th meeting of Approval Committee

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Minutes of the 207th Unit Approval Committee Meeting of Kandla SEZ held on 28.10.2024 at 11:00 hrs under the Chairmanship of Shri Dinesh Singh, Development Commissioner, Kandla Special Economic Zone. Following were present: : Joint Development Commissioner, KASEZ.

  1. Shri. Marut Tripathi : Sub-Divisional Magistrate, Anjar Rep. of District Collector, Kutch
  2. Shri. Sunil Solanki : Joint DGFT, Office of Jt. DGFT, Rajkot. (Video Conferencing mode).
  3. Shri. Rohit Soni : Deputy Commissioner of Customs, Rep. of Commissioner of Customs, Kandla.
  4. Shri Rajesh Dahiya : Assistant Commissioner of Income Tax, Gandhidham.
  5. Shri. Vincent Colaco : Manager R. M., DIG, Bhuj (Video Conferencing mode).
  6. Shri. Bharat Nakum : Deputy Development Commissioner, KASEZ (Special Invitee)
  7. Shri. Himanshu Gunawat : Deputy Commissioner of Customs, KASEZ (Special Invitee)
  8. Shri. Bhanu Jain Absentees:-
  9. Director (Banking) 207.1 Review/Confirmation of the minutes of last meeting (206thUAC) of the Approval Committee:- Minutes of the last meeting of Unit Approval Committee were confirmed. 1

tees:-

  1. Director (Banking) 207.1 Review/Confirmation of the minutes of last meeting (206thUAC) of the Approval Committee:- Minutes of the last meeting of Unit Approval Committee were confirmed. 1

207.1 NEW UNIT APPLICATION AGENDA ITEM NO. 207.1.1 Application for setting up of a Manufacturing Unit in KASEZ namely M/s. Jindal Textile Industries Pvt Ltd., E-l, Industrial Area, Near Old Court, Panipat, Hariyana. A proposal has been submitted by M/s. Jindal Textile Industries Pvt Panipat, Haryana for setting up a unit in Kandla SEZ for Ltd., manufacturing activity. No representative of unit appeared before the Committee to explain the proposal. The unit vide letter dated 25.10.2024 has shown their inability to attend the UAC meeting as the Director along with his Manager will be leaving for China on 28.10.2024 to attend an exhibition where they have displayed their products. Therefore, the Approval Committee after due deliberation decided to defer their proposal. AGENDA ITEM NO. 207.1.2 Application for setting up of a Manufacturing unit in KASEZ by M/s. OILCHEM INDUSTRIES PRIVATE LIMITED., PLOT NO.5/14, NCWI ZONE, NARGOL CHAR RASTA, GIDC, SRIRAM, VALSAD, GUJRAT. A proposal has been submitted by M/s. OILCHEM INDUSTRIES PRIVATE LIMITED, Sriram, Valsad, Gujarat for setting up a unit in Kandla SEZ for manufacturing activity. Shri Mohan Nanda, Director of the company explained the proposal. Shri Mohan Nanda stated that they are already in oil & lubricant work and having a manufacturing unit in Sarigam GIDC, Vapi having turnover of Rs.

a, Director of the company explained the proposal. Shri Mohan Nanda stated that they are already in oil & lubricant work and having a manufacturing unit in Sarigam GIDC, Vapi having turnover of Rs. 40-50 crores and now they propose to set up oil 86 lubricant plant in KASEZ. The Committee noted that their proposal was deferred in the last UAC meeting held on 30.09.2024 with direction to the applicant to submit their complete proposal for setting up a manufacturing unit along with foreign exchange outgo, manufacturing process and flow chart of each items proposed, audited balance sheet of the company for the last two years, working capital details along with source of funds and exact business activity at their unit at Vapi. However, the Committee noted that they have submitted only foreign exchange outgo and balance sheet for year A.Y 2022- 23 8& 2023-24. Further, the Committee noted that the present application submitted has inconsistency wherein the applicant has not submitted correct foreign exchange balance sheet wherein the FOB value of exports, total foreign exchange outgo and net foreign exchange earnings does not match. 2

y wherein the applicant has not submitted correct foreign exchange balance sheet wherein the FOB value of exports, total foreign exchange outgo and net foreign exchange earnings does not match. 2

Further, the Committee noted that they have submitted employment of 80 persons (Men) and asked the Director to clarify to specific reason if any. In reply, Sh. Nanda stated that they will submit the reason in detail. Further, the Committee noted that in their proposal they have submitted water requirement of 991 K. Ltr. and asked the Director to clarify the use of Water in the project proposal. In reply, Shri Nanda stated that they do not require large quantity of water and by mistake they have submitted 99IK. Ltr. water and will submit the exact requirement quantity of water for their proposed project. The Committee further noted that a reference has been made to the Income Tax authority forwarding therewith the balance sheet of the applicant unit for examination of huge difference between their income and GST sale during the A.Y. 2021-22, 2022-23 & 2023-24 and requested the member Income Tax to examine the issue and submit their report before the Committee for further examination. 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 submitting relevant documents of all the deficiencies as pointed out during the time of the meeting.

on to the applicant to submit their complete proposal for setting up a manufacturing unit after submitting relevant documents of all the deficiencies as pointed out during the time of the meeting. The Committee also directed the applicant that their proposal was taken up for consideration thrice in the UAC meeting and the unit has been granted last and final opportunity to submit their complete proposal after removing all deficiencies otherwise their proposal will not be considered and subject to report received from Income tax authority. AGENDA ITEM NO. 207.1.3 Application for setting up of a Manufacturing & Trading unit in KASEZ namely by M/s. D. Riku Tazgi Exim LLP, 48/2, Ground Floor, Rama Road, Najafgarh Road, Industrial Area, New Delhi-110015. A proposal has been submitted by M/s. D. Riku Tazgi Exim LLP, New Delhi for setting up a unit in Kandla SEZ for manufacturing and trading activity. Shri Ritesh Patwari, Authorised Representative of the firm explained the proposal. Shri Ritesh stated that they are in the business of tobacco trading since 2001 and are also doing third party exports of other manufacturing company since last 4 years. As a trading unit they are doing 50% exports majorly to Dubai, U.K., U.S.A., West & South Africa. Now they propose to set up a manufacturing and trading unit in KASEZ for Guthka, Khaini, Pan Masala, Nicotine, Nicotine pouches, etc. The Committee asked the unit representative about the investment they proposed for their manufacturing activity and trading activity.

or Guthka, Khaini, Pan Masala, Nicotine, Nicotine pouches, etc. The Committee asked the unit representative about the investment they proposed for their manufacturing activity and trading activity. In reply, Shri Ritesh stated that they propose to make investmd&it of about Rs. 1.80 V; ■ 3

crores for the proposed manufacturing & trading activity. Further, he also stated that they propose to also indulged in bond to bond transfer of their manufactured goods to duty free shops at international airports. The Committee asked the unit representative how the bond to bond transfer will take place. In reply, Shri Ritesh stated that they will file E-way Bill for Bond to Bond transfer. The Committee directed the applicant to submit an Affidavit/Undertaking for bond to bond transfer of manufactured goods to international airports and also they will apply for space in the old Zone and SDF buildings only. The Approval Committee after due deliberation approved the proposal of manufacturing activity and trading activity subject to standard terms and conditions for such units which, inter-alia, include no DTA Sale/clearance of any goods and also subject to furnishing an affidavit/undertaking for use of plastic packaging as detailed under Item No. 117.1.2 in terms of the Apex Court’s judgement. Betel nuts (supari) if imported will be consumed in their finished products for 100%exports and no job work/trading & intra-zone sale of betel nut will be allowed i.e.

the Apex Court’s judgement. Betel nuts (supari) if imported will be consumed in their finished products for 100%exports and no job work/trading & intra-zone sale of betel nut will be allowed i.e. the same will be consumed only by the actual user. Any restrictions on import/export of manufactured items and its raw materials will apply. Betel nut/areca nut, if imported, will be consumed in their finished products for 100% exports and will not be allowed to be taken out of the Zone for Job-work/sub-contracting and the applicant will install machinery for further processing of betel nut/areca nut in their factory premises. Further, no DTA sale is allowed for the approved traded items. 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. Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable. Further, the applicant will ensure the compliance of all guidelines, policies issued by any Ministiy from time to time pertaining to the items approved in LoA. Further, the applicant will give an Affidavit/Undertaking for bond to bond transfer of manufactured goods to duty free shops at international airports, viii) Further, the applicant will give an undertaking that none of the items proposed above are falling under negative list and are not hazardous storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action may be

he items proposed above are falling under negative list and are not hazardous storage/transmission/handling and if the items are found in negative list or hazardous in nature, penal action may be initiated against them. i) ii) hi) iv) v) vi) vii) environmental clearance for require or 4

1 Minutes of the 207th Unit Approval Committee Meeting of Kandla SEZ held on AGENDA ITEM NO. 207.1.4 Application for setting up of a Manufacturing unit in KASEZ by M/s. Padmaraj Synergy (I) Pvt. Ltd, OFFICE NO. 112 & 113, 1st FLOOR, TRADE CENTRE, NR. TIMBER BHAVAN, PLOT NO. 46, SECTOR S, GANDHIDHAM. A proposal has been submitted by M/s. Padmaraj Synergy (I) Pvt. Ltd., Gandhidham for setting up a unit in Kandla SEZ for manufacturing, trading and warehousing service activity. Shri Ram Yarn, Director of the company explained the proposal. Shri Ram stated that they propose to set up a manufacturing unit for pan masala & gutkha and also warehousing and trading unit in KASEZ. The Committee asked the Director of the company as to why whether they have any experience in the manufacturing activity of pan masala and gutkha, market survey of the products proposed, the source of funds required for setting up the unit in KASEZ and complete project details. In reply, Shri Ram stated that he is in the trading business of base oil and transportation business and he has no experience in the manufacturing of pan masala.

ASEZ and complete project details. In reply, Shri Ram stated that he is in the trading business of base oil and transportation business and he has no experience in the manufacturing of pan masala. Further, he stated that the proposed project will be funded from sale of land and loan from bank finance thereafter the finished goods will be exported to UAE based on customers demand. The Committee noted that the ITR of the company is very weak for the last two years i.e. only Rs. 7,500/- & Rs. 15,699/- for F.Y. 2022-23 & 2023- 24 as seen from the ITRs submitted and how they will make investment of Rs. 181 lakhs which appears to be contrary and asked the Director of the company as to how they will implement their proposed project in KASEZ with such a low income. In reply, Shri Ram Varu stated that they will sell their land to fund their proposed project. The Committee found the reply submitted by the Director is not satisfactory and also source of funding is not clear. Further, the Committee also noted that some of the items proposed for warehousing and trading activity are sensitive in nature which the Committee is not permitting in the recent past and also the Director has no experience in proposed manufactured items. Therefore, the Approval Committee after due deliberations decided to reject their proposal. 5

permitting in the recent past and also the Director has no experience in proposed manufactured items. Therefore, the Approval Committee after due deliberations decided to reject their proposal. 5

AGENDA ITEM NO. 207.1.5 Application for setting up of a Manufacturing unit in KASEZ namely M/s. VISOK ENTERPRISES PRIVATE LIMITED, 442, Basement (FP), Mathura Road, Bhogal, Jungpura, South Delhi, New Delhi - 110 014. A proposal has been submitted by M/s. Visok Enterprises Private Limited, New Delhi for setting up a unit in Kandla SEZ for manufacturing activity. Shri Ajay Aggarwal, Director of the company explained the proposal. Shri Ajay stated that they are in the ancestor’s business of petrochemical industry since last 50 years and they supply raw materials to chemical fertilizers to Industry and now they propose to set up a unit in KASEZ for manufacturing activity of granulated fertilizers. He further stated that they are having 3-4 refinery units under Pan India of petrochemicals and now they want to set up granulated fertilizers for exports to agro industry and to farmers. He further stated that they are having petro-chemical manufacturing plants in South, U.P., Punjab and Haryana and also BPC distributors and also having petrol pumps. The Committee asked the Director as to whether they have taken all the mandatory clearance/NOCs from related Departments.

Punjab and Haryana and also BPC distributors and also having petrol pumps. The Committee asked the Director as to whether they have taken all the mandatory clearance/NOCs from related Departments. In reply, Shri Ajay stated that their project is in initial stage and after getting approval, they will apply for NOCs from Department of Fertilizer and other Departments. The Committee noted that the applicant has submitted sketchy project report and directed the applicant to submit details project report showing brief of manufacturing process, flow chart of all manufacturing items as proposed, photographs of plant & machinery proposed. 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. 207.2 REQUEST FOR BROADBANDING/ITEM ADDITION AGENDA ITEM NO. 207.2.1 Addition of Manufacturing Activity in unit’s existing LoA of Trading Activity - Request of M/s. Bharat Chemical, KASEZ. M/s. Bharat Chemical, KASEZ is an approved unit for trading activity of Furnace Oil, Diesel, HSD & Other Petroleum Products in KASEZ. The unit have been granted Letter of Approval No. F.No. KASEZ/IA/05/2009-10 dated 10.06.2009, as amended. 6

t for trading activity of Furnace Oil, Diesel, HSD & Other Petroleum Products in KASEZ. The unit have been granted Letter of Approval No. F.No. KASEZ/IA/05/2009-10 dated 10.06.2009, as amended. 6

’ Minutes of the 207th Unit Approval Committee Meeting of Kandla SEZ held on Now the said unit has requested for addition of manufacturing activity of 03 products and submitted the list of items to be manufactured along with their ITC HS Code. Shri Dilip Bhanushali, Partner of the firm explained the proposal. Shri Bhanushali stated that they are in chemical & oil business since 2002 and have started their operations in KASEZ since 2011 for trading activity of HSD, Furnace Oil 86 other petroleum products and they supply the traded items to ships from their SEZ units. He further stated that they are into bunker supply 8s supply to ships and now they wish to include manufacturing activity in their existing LoA for green fuels i.e. bio-fuels which are methanol based fuels wherein they will undertake 30% blending activity as per DG Shipping Circular. He further stated that the bio-fuels market is being diverted to India due to Russia Ukraine War and they will undertake drumming and blending activity and then re-export the manufactured goods to African, non-African and European countries. The Committee asked the Partner of the firm as to whether they will employ chemist and operations team 8& whether they require any additional area for the proposed manufacturing activity.

ountries. The Committee asked the Partner of the firm as to whether they will employ chemist and operations team 8& whether they require any additional area for the proposed manufacturing activity. In reply Shri Bhanushali stated that they will establish lab to check the flash point parameters and also appoint chemists and other 15-20 personnel’s for the proposed manufacturing activity and the space allotted to them is sufficient wherein they have been allotted 1944 sq. mtrs. area out of which 300 sq. mtrs. is covered area and rest is open space wherein they will construct tanks and install machinery 860ther construction work. He further stated that since the start of their unit in KASEZ since last 15 years they have not done any DTA sales of their traded goods. The Committee further asked the Partner about the raw material viz. FAME which is restricted item. In reply, Shri Bhanushali stated that they require about 20% of raw material i.e. FAME for blending purpose in their finished goods and the Committee may restrict the said item. The Committee directed the partner to submit the minimum quantity required for item at Sr. No. 12 of the raw material in their finished goods. The Approval Committee after due deliberation decided to approve the proposal for addition of manufacturing activity in their existing LoA subject to submission of correct ITC HS with regard to raw material item at Sr. No.

ter due deliberation decided to approve the proposal for addition of manufacturing activity in their existing LoA subject to submission of correct ITC HS with regard to raw material item at Sr. No. 9 of their proposal and also subject to physical verification regarding the compliance with regard to physical demarcation of trading and manufacturing activities with separate entry 8& exit gates for each activity and also subject to standard terms and conditions:- Any restrictions on import/export of manufacturing items and its raw materials will apply. i) 7

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. 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 with provisions of CCTV with sufficient longer duration of storage & other equipments. Further, the unit will submit separate APRs for their manufacturing and trading activity. Further, the unit will maintain separate stock register for manufacturing and trading which will be subject to regular checking by the KASEZ customs authorities. Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.

stoms authorities. Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. 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. Further, the unit will give an undertaking that they will comply with all the prescribed norms such as PESO, Fire NOG, etc. under any Act/Rules. 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. ii) hi) iv) v) vi) vii) viii) ix) X) AGENDA ITEM NO. 207.2.2 Request for correction of HSN Code and Addition of new items in their existing Letter of Approval No. 01/2022-23 dated 04.04.2022for Trading activity, as amended issued to M/s. Bluebird Bizglobe (OPC) Pvt. Ltd, KASEZ. M/s. Bluebird Bizglobe (OPC) Pvt. Ltd., KASEZ is an approved unit for trading activity. The unit has been granted LoA No. 01/2022-23 dated 04.04.2022 issued vide F.No. KASEZ/BD/01/2022-23, as amended. Now the said unit has requested for correction of one HSN Code in their existing LoA and also addition of items under trading activity and submitted the list of items for trading activities. Shri Aashu Jatav, Director of the company appeared before the Committee to explain the proposal.

lso addition of items under trading activity and submitted the list of items for trading activities. Shri Aashu Jatav, Director of the company appeared before the Committee to explain the proposal. Shri Aashu stated that they are into the business of liquor supply to ships since last 6-7 years and have also established a trading unit in KASEZ since last 21/2 years and now they have 8

requested for correct in HS Code of one of the items approved in their trading LoA from accessories of cell phone to cell phone and its accessories, which has already been imported by them and also addition of 3 new items for trading activity. The Committee asked the Director as to where they will supply cell phones and its accessories. In reply, Shri Aashu stated that they will supply the said items to seamens and masters of the ships arriving at Kandla and Mundra port. He further stated that their sister concern outside KASEZ is already doing ship supply work and supplying the items to ships. The Committee directed the Director to submit documents and details of items already supplied by their sister concern unit so as to ascertain as to whether the cell phones & its accessories are actually required in ships or otherwise.

o submit documents and details of items already supplied by their sister concern unit so as to ascertain as to whether the cell phones & its accessories are actually required in ships or otherwise. Further, the Committee also noted that they have imported cell phone for authorised operation without Approval of the Committee and which is not their authorised activity as per LoA issued. defer their proposal regarding change in HS Code of one items and addition of 3 items in trading activity and directed the unit to submit the details of items supplied by their sister concern unit along with documentary evidence as well as directed DC, Customs to enquire into the matter and submit report on their un-authorised import of Cell phone. AGENDA ITEM NO. 207.2.3 Request for broad banding of additional 01 item as their finished product and two items as raw materials in their existing manufacturing activity - Request of M/s GKN Chemical India Pvt Ltd, KASEZ. M/s. GKN Chemical India Pvt Ltd, KASEZ is an approved unit with LoA dated 20.01.2023 issued from F. No. KASEZ/IA/18/2022-23 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 requested for broad banding of their manufacturing activity.

ading activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval, as amended. Now the said unit has requested for broad banding of their manufacturing activity. The unit has expressed their intention for addition of 01 product as a finished product and two products as a raw material for their manufacturing activity and submitted list of goods along with their ITC HS Code. Shri Ratnaswami, General Manager (Finance) of the company explained their proposal. Shri Ratnaswami stated that they intend to broad­ band their manufacturing activity for one new product textile auxiliary oil from refined palm oil & base oil and the finished goods will be used in textile industry for thread strong and machine oiling. 9

The Committee noted that the unit has been granted one time permission for import of base oil as raw material and asked the representative as to whether the said item granted for one time permission have been received by them or not.

been granted one time permission for import of base oil as raw material and asked the representative as to whether the said item granted for one time permission have been received by them or not. In reply, Shri Ratnaswami stated that they have procure the raw material base oil from indigenous sources and imported base oil has also been landed at Port which will be transported to KASEZ soon within a day or two. The Approval Committee after due deliberation decided to approve the proposal for addition of one item in manufacturing activity along with its raw materials in their existing LoA subject to standard terms and conditions:- Any restrictions on import/export of manufacturing items and its raw materials will apply. policies issued by any Ministry^ from time to time pertaining to 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. i) ii) iii) iv) v) vi) AGENDA ITEM NO. 207.2.4 Addition of Goods under the Trading Activity in the existing LoA - Request of M/s. KKP Petchem Pvt. Ltd., KASEZ. M/s. KKP Petchem Pvt. Ltd., Plot No. 582 to 584, New Area, KASEZ is approved unit with LoA dated 25.01.2010 issued from F. No.

ty in the existing LoA - Request of M/s. KKP Petchem Pvt. Ltd., KASEZ. M/s. KKP Petchem Pvt. Ltd., Plot No. 582 to 584, New Area, KASEZ is approved unit with LoA dated 25.01.2010 issued from F. No. KASEZ/IA/28/2009-10 for manufacturing and trading activity, as amended subject to certain terms and conditions enumerated in the aforesaid Letter of Approval. an Now the said unit has requested for addition of items in their Trading activity in their existing LoA. Shri Ramesh Shivaji Mohite, Authorised Representative of the company explained their proposal. Shri Ramesh informed that Ihey are into 10

Minutes of the 207th Unit Approval Committee Meeting of Kandla SEZ held on manufacturing and trading activity of chemical items and now they want to include two items in their trading activity. The Committee asked the unit representative about the manufacturing activity undertaken by them and employment & turnover of the unit. In reply, Shri Ramesh stated that they are undertaking manufacturing activity of Thinner and are giving employment to 35 persons and having yearly export turnover of approx. Rs. 250 crores. The Approval Committee after due deliberation decided to approve the proposal for addition of 02 items in trading activity in their existing LoA and also 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.

ditions: 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. 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. Further, no DTA sale is allowed for the approved traded item. 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. Further, the unit will submit separate APRs for their manufacturing and trading activity. mandatoiy requirement prescribed under any Act/Rules from 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. ii) iii) iv) v) vi) vii) viii) ix) 11

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. ii) iii) iv) v) vi) vii) viii) ix) 11

AGENDA ITEM NO. 207.2.5 Request of M/s. Shriji Overseas, KASEZ for addition of items in manufacturing activity in their existing LoA. M/s Shriji Overseas, KASEZ is an approved unit for manufacturing of Chewing Tobacco & Filter Gutkha, Khaini, Zarda, Pan Masala, Tobacco/Kaini and warehousing service activity of various items in KASEZ vide LoA No. KASEZ/IA/30/2020-21 dated 09.12.2020, as amended. Now the said unit has requested for addition of new items in their manufacturing activity and submitted manufacturing process for their finished goods. Shri Rajvardhan Jha, Partner of the firm explained their proposal. Shri Jha stated that they have requested for addition of certain new items in their manufacturing activity such as refectory material, other natural abrasive, Quartzs, etc. and requested to grant them approval of broad­ banding of additional manufacturing items. The Committee noted that raw material and finished goods are same items of proposed project and they have not submitted details related to employment generation, flow chart of all manufacturing items, bifurcation with regard to manufactured, trading and Warehousing activity. Further, the unit is having huge rental dues of about Rs. 50 lakhs and asked the partner about delay in payment of their rental dues.

with regard to manufactured, trading and Warehousing activity. Further, the unit is having huge rental dues of about Rs. 50 lakhs and asked the partner about delay in payment of their rental dues. In reply, Shri Jha stated that they have requested for time up to December’2024 for payment of rental dues. The Committee directed the Partner of the firm to clear the rental dues within 15 days’ time failing which eviction proceedings will be initiated against the unit and also action for cancellation of their LoA under Section 16 of SEZ Act, 2005. area reject their proposal regarding additional items in manufacturing activity with direction to the unit to first clear their outstanding rental dues and then come up for addition of items in manufacturing activity. Further, the Committee also directed the DC office to initiate action for eviction of unit s if the unit does not clear the outstanding rental dues within 15 premises days’ time and also action for cancellation of their LoA under Section 16 of SEZ Act, 2005. AGENDA ITEM NO. 207.2.6 Enlargement of Manufacturing Activity (Addition of new products in unit’s LoA) - Request of M/s. Luckystar International Pvt. Ltd., KASEZ. M/s Luckystar International Pvt. Ltd., KASEZ is manufacturing of All types of plastic bags, Garbage collection, carry bags, shopping bags, house hold and allied items and plastic granules, shredding, approved unit for an 12

Pvt. Ltd., KASEZ is manufacturing of All types of plastic bags, Garbage collection, carry bags, shopping bags, house hold and allied items and plastic granules, shredding, approved unit for an 12

grinding pieces, chrushings, sheets, extruded and moulded articles, Agglomerates, colored tarpaulins in KASEZ vide Letter of Approval No. KFTZ/IA/1673/96/2325 dated 04-06-1997, as amended. Now the said unit has requested for Enlargement of Manufacturing Activity (Addition of new products in unit’s LoA) and submitted the list of items to be manufactured along with their ITC HS Code. Shri Sheetal Sanghvi, Authorised Representative of the company appeared before the Committee to explain the proposal. Shri Sheetal stated that they are in KASEZ since 1997 for import of plastic waste/scrap and manufacturing granules, agglomerates, etc. and now they have requested for enlargement of manufacturing activity i.e. value added products out of the plastic waste/scrap.

f plastic waste/scrap and manufacturing granules, agglomerates, etc. and now they have requested for enlargement of manufacturing activity i.e. value added products out of the plastic waste/scrap. He further stated that they will undertake the additional manufacturing activity within the approved quantum capacity of their LoA and they will not require any additional space or separate LoA. The Committee noted that the SEZ Section, Department of Commerce, New Delhi vide their letter dated 23.09.2024 had issued clarification that requests for broad-banding may be allowed for plastic or used clothing recycling units, subject to the conditions that such units shall not set up any sub-units, and all transactions of the unit shall be regulated through a single bank account, along with adherence to other conditions as stipulated under Rule 18(4A) and DoC’s extant policy in this regard. The Approval Committee after due deliberation decided to approve the proposal for enlargement of manufacturing activity (addition of products) in their existing LoA subject to standard terms and conditions: new i) Any restrictions on import/export of manufacturing items and its raw materials will apply. Further, the unit will ensure that they shall not set up any sub-units and all the transactions of the unit shall be regulated through a single bank account along with adherence to other conditions as stipulated under Rule 18(4A) and DoC’s extant policy in this regard. ii) iii) iv) v) vi) 13

f the unit shall be regulated through a single bank account along with adherence to other conditions as stipulated under Rule 18(4A) and DoC’s extant policy in this regard. ii) iii) iv) v) vi) 13

proposed are falling under negative list and if the items are found in negative list, penal action will be initiated against them. vii) AGENDA ITEM NO. 207.2.7 Enlargement of Manufacturing Activity (Addition of new products in unit’s LoA) - Request of M/s. Mokshstar International, KASEZ. M/s Mokshstar International, KASEZ is an approved unit for manufacturing of Plastic Granules/Shredding/Grinding/Pieces etc. from waste/scrap/ discarded/obsolete plastic items, etc. in KASEZ vide Letter of Approval No. KFTZ/IA/1657(A)/96 dated 31-12-1996, as amended. Now the said unit has requested for Enlargement of Manufacturing Activity (Addition of new products in unit’s LoA) and submitted the list of items to be manufactured along with their ITC HS Code: Shri Sheetal Sanghvi, Partner of the firm appeared before the Committee to explain the proposal. Shri Sheetal stated that they are in KASEZ since 1997 for import of plastic waste/scrap and manufacturing granules, agglomerates, etc. and now they have requested for enlargement of manufacturing activity i.e. value added products out of the plastic waste/scrap.

f plastic waste/scrap and manufacturing granules, agglomerates, etc. and now they have requested for enlargement of manufacturing activity i.e. value added products out of the plastic waste/scrap. He further stated that they will undertake the additional manufacturing activity within the approved quantum capacity of their LoA and they will not require any additional space or separate LoA. The Committee noted that the SEZ Section, Department of Commerce, New Delhi vide their letter dated 23.09.2024 had issued clarification that requests for broad-banding may be allowed for plastic or used clothing recycling units, subject to the conditions that such units shall not set up any sub-units, and all transactions of the unit shall be regulated through a single bank account, along with adherence to other conditions as stipulated under Rule 18(4A) and DoC’s extant policy in this regard. The Approval Committee after due deliberation decided to approve the proposal for enlargement of manufacturing activity (addition of products) in their existing LoA subject to standard terms and conditions: Any restrictions on import/export of manufacturing items and its raw materials will apply. new i) ii) iii) 14

(addition of products) in their existing LoA subject to standard terms and conditions: Any restrictions on import/export of manufacturing items and its raw materials will apply. new i) ii) iii) 14

Further, the unit will ensure that they shall not set up any sub-units and all the transactions of the unit shall be regulated through a single bank account along with adherence to other conditions as stipulated under Rule 18(4A) and DoC’s extant policy in this regard. proposed are falling under negative list and if the items are found in negative list, penal action will be initiated against them. iv) V) Vi) vii) AGENDA ITEM NO. 207.2.8 Enlargement of Manufacturing Activity (Addition of new products in unit’s LoA) - Request of M/s. Satguru Polyfab Pvt. Ltd., KASEZ. M/s Satguru Polyfab Pvt. Ltd., KASEZ is an approved unit for manufacturing of Pellets, agglomerates, granules, LDPE/HDPE/PP/ ABS etc. etc.in KASEZ vide Letter of Approval No.KFTZ/IA/1690/97/6925 dated 12.11.1997, as amended. Now the said unit has requested for Enlargement of Manufacturing Activity (Addition of new products in unit’s LoA) and submitted the list of items to be manufactured along with their ITC HS Code: Shri Sheetal Sanghvi, Director of the company appeared before the Committee to explain the proposal. Shri Sheetal stated that they are in KASEZ since 1998 for import of plastic waste/scrap and manufacturing granules, agglomerates, etc. and now they have requested for enlargement of manufacturing activity i.e. value added products out of the plastic waste/scrap.

f plastic waste/scrap and manufacturing granules, agglomerates, etc. and now they have requested for enlargement of manufacturing activity i.e. value added products out of the plastic waste/scrap. He further stated that they will undertake the additional manufacturing activity within the approved quantum capacity of their LoA and they will not require any additional space or separate LoA. The Committee noted that the SEZ Section, Department of Commerce, New Delhi vide their letter dated 23.09.2024 had issued clarification that requests for broad-banding may be allowed for plastic or used clothing recycling units, subject to the conditions that such units shall not set up any sub-units, and all transactions of the unit shall be regulated through a single bank account, along with adherence to other conditions as stipulated under Rule 18(4A) and DoC’s extant policy in this regard. * 15

The Approval Committee after due deliberation decided to approve the proposal for enlargement of manufacturing activity (addition of new products) in their existing LoA subject to standard terms and conditions:- Any restrictions on import/export of manufacturing items and its raw materials will apply. Further, the unit will ensure that they shall not set up any sub-units and all the transactions of the unit shall be regulated through a single bank account along with adherence to other conditions as stipulated under Rule 18(4A) and DoC’s extant policy in this regard. proposed are falling under negative list and if the items are

a single bank account along with adherence to other conditions as stipulated under Rule 18(4A) and DoC’s extant policy in this regard. proposed are falling under negative list and if the items are found in negative list, penal action will be initiated against them. i) ii) iii) iv) v) vi) vii) AGENDA ITEM NO. 207.2.9 Addition of items in Trading and Warehousing Activity in their existing LoA - Request of M/s. V. Milak Enterprises, KASEZ. M/s V. Milak Enterprises, KASEZ is an approved unit for Manufacturing, Trading and Warehousing service activity vide LOA No. KASEZ/IA/1721/98/3202 dated 21.07.1998, as amended. Now the said unit has requested for addition of new items in trading & warehousing activity in their existing LoA. Shri Vivek Milak, Partner of the firm explained their proposal. Shri Milak stated that they an existing unit since 1998 for manufacturing, trading & warehousing activity and now they want to add some new items in their trading and warehousing service activity. He further stated that the items proposed for trading and warehousing activity are already approved in their associate unit in KASEZ. The Committee asked the Partner of the firm as to whether they have separate premises for their manufacturing, trading and warehousing activity 16

lready approved in their associate unit in KASEZ. The Committee asked the Partner of the firm as to whether they have separate premises for their manufacturing, trading and warehousing activity 16

and what is the arrangement made for the newly proposed items in trading and warehousing activity. In reply, Shri Milak stated that they are already having space available for the proposed trading and warehousing activity wherein one space is fully vacant wherein they will undertake the proposed trading & warehousing activity. He further stated that they are having totally separate area for their manufacturing, trading and warehousing activity. The Approval Committee after due deliberation decided to approve the proposal for addition of items in trading activity and warehousing service activity (subject to unit submitting KYC of their clients alongwith ITR of last 3 years on whose behalf they will warehouse goods) in their existing LoA and also subject to the following standard terms and conditions: None of the items which are restricted or prohibited will be allowed to be traded/warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. This clause will have overriding effect for any approval granted in LoA now or before. 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. Further, no DTA sale is allowed for the approved traded items.

n the above ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail. Further, no DTA sale is allowed for the approved traded items. The above permission is also subject to further condition that the unit shall maintain separate accounts for manufacturing, trading and warehousing service activity and earmark separate space for all the activities with provisions of CCTV with sufficient longer duration of storage 86 other equipments. Further, the unit must ensure that they should have a tamper­ proof ERP/SAP/Tally system for their trading activity and warehousing activity. Further, the transfer of goods from one FTWZ to another FTWZ shall not be allowed except in specific and exceptional cases after consideration by the UAC. Further, the unit will submit separate APRs for their manufacturing, trading and warehousing service. Further, the unit will maintain separate stock register for manufacturing, trading and warehousing service which will be subject to regular checking by the KASEZ customs authorities. i) ii) iii) iv) v) vi) vii) viii) ix) X) xi) 17

arate stock register for manufacturing, trading and warehousing service which will be subject to regular checking by the KASEZ customs authorities. i) ii) iii) iv) v) vi) vii) viii) ix) X) xi) 17

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. xii) 207.3 MISCELLANEOUS ITEMS AGENDA ITEM NO. 207.3.1 Intimation of change from Proprietorship to Partnership in M/s Bonza, KASEZ & change of title Name from M/s Bonza to M/s Bonza Enterprises. M/s Bonza, KASEZ is an approved unit with LoA No. 05/2023-24 dated 09.08.2023, for warehousing service activity and Trading Activity subject to certain terms and conditions enumerated in the aforesaid Letter of Approval. Now the said unit has informed about the change in the constitution of the firm from proprietorship firm to partnership firm and change in the name of the firm from M/s Bonza to M/s Bonza Enterprises. No representative of unit appeared before the Committee to explain the proposal. The Committee noted that their request for change in constitution and change in name was taken up in the UAC thrice and no representative appeared which shows the casualness of the unit in approaching UAC. Therefore, the Approval Committee after due deliberation decided to reject their proposal.

the UAC thrice and no representative appeared which shows the casualness of the unit in approaching UAC. Therefore, the Approval Committee after due deliberation decided to reject their proposal. The Committee further noted that the unit has not commenced their authorised operations in KASEZ and directed the unit to first commence their authorised operations in KASEZ and then come up for change in constitution and change in name of the firm. AGENDA ITEM NO. 207.3.2 Intimation of change in Partnership in the firm - Request of M/s. AB Warehousing, a unit of Trading/Warehousing activity KASEZ. M/s. AB Warehousing, KASEZ, is an approved unit of Warehousing/Trading activity vide LoA No. 44/2020-21 dated 24.03.2021 as amended from time to time. Now the said unit has intimated regarding change in partners of the firm wherein one Partner had retired from the firm and two new Partners have joined in the firm and submitted copy of Supplementary Deed of Admission cum Retirement Partnership Deed dated 04.01.2024 and also submitted copy of Form-G issued from Registrar of Firms regarding change in partnership. 18

itted copy of Supplementary Deed of Admission cum Retirement Partnership Deed dated 04.01.2024 and also submitted copy of Form-G issued from Registrar of Firms regarding change in partnership. 18

Shri Shabbir Rayma, Partner of the firm along with Shri Mohammad Shahid Rayma and Shri Parasharkumar Acharya, Partners being inducted in the firm appeared before the Committee to explain the proposal. Shri Shabbir stated that he and his uncle was partner in the firm and now his uncle has retired from the firm and his younger brother & one of his friend who is having 11 years’ experience in the drumming field have been inducted as new partners in the firm and requested to take the change of partners in records. 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). 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.

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/partnership/directorship to the Income Tax Department for necessary action at their end. AGENDA ITEM NO. 207.3.3 Intimation of change in Board of Director Shareholding Pattern - Request of M/s. Capital Foods Private Limited, KASEZ. M/s. Capital Foods Pvt. Ltd., KASEZ is an approved unit with LoA No. KSEZ/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 said unit has intimated about the change in Board of Director & shareholding pattern of the company wherein one new Director have been appointed in the company and also there is change in shareholding pattern of the company. The unit has submitted copy of DIR-12 containing particulars of changes among the directors. Shri Vivek Milak, Authorised Representative of the company explained the proposal. Shri Milak stated that there is change in Directors of the company wherein one new director has been inducted and there is also some change in the shareholding pattern of the company. 19

proposal. Shri Milak stated that there is change in Directors of the company wherein one new director has been inducted and there is also some change in the shareholding pattern of the company. 19

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). take on record the proposal of change in Board of Directors & shareholding pattern of the 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/partnership/directorship to the Income Tax Department for necessary action at their end. AGENDA ITEM NO. 207.3.4 Intimation of change in Partnership deed of M/s Vimal Trading, KASEZ. M/s Vimal Trading, Shed No. 398, AS-IV, Sector-1, KASEZ, is an approved unit for trading /warehousing service activity. The unit has been granted Letter of Approval dated 31.01.2017, issued vide F.No. KASEZ/IA/21 /2016-17, as amended. The Committee noted that the request of M/s.

rading /warehousing service activity. The unit has been granted Letter of Approval dated 31.01.2017, issued vide F.No. KASEZ/IA/21 /2016-17, as amended. The Committee noted that the request of M/s. Vimal Trading, KASEZ for change in partnership of the firm was placed before 206th UAC meeting held on 30.09.2024 and the UAC decided to defer their proposal regarding change in Partnership of the firm and directed the unit to submit the copy of Form G issued by Registrar of Firms and details of financial consideration made by the incoming partners along with detailed bank statement. Now the unit has submitted copy of Form-G issued from Registrar of Firms regarding change in partnership deed and also bank statement for financial consideration made by the new incoming partners. Shri Kishor Chavda, Authorised Representative of the firm along with Shri Ajay Sinh Zala and Shri Vijaysinh Zala, Partners being inducted in the firm and appeared before the Committee to explain the proposal. Shri Chavda stated that their proposal for change in partners was deferred in the last UAC with direction to furnish copy of Form-G and financial consideration made by the new partners in the firm which they have now submitted. The Committee asked the authorised representative of the firm about the present activities being undertaken by them. In reply, ri Chavda 20 i '

partners in the firm which they have now submitted. The Committee asked the authorised representative of the firm about the present activities being undertaken by them. In reply, ri Chavda 20 i '

stated that they are indulged in trading activity of plastic items & liquor and warehousing activity of chemicals & textiles items. The Committee further asked the authorised representative of the firm as to whether they comply with the statutory compliance of physical demarcation of trading and warehousing activities with separate entry & exit gates for each activity. In reply, Shri Chavda stated that they have separate demarcation of trading of liquor items and also there is separate space for trading and warehousing activity. The Approval Committee after due deliberation decided to defer the proposal for change in partnership of the firm with direction to DC office to depute a team for physical verification with regard to physical demarcation of trading and warehousing activities with separate entry & exit gates for each activity. AGENDA ITEM NO. 207.3.5 Permission to warehouse goods on behalf of Overseas/ DTA client - Request of M/s. Harmann Lever Exim, KASEZ. The Committee noted that M/s. Harmann Lever Exim, KASEZ has requested for permission for warehousing activity of additional items. Shri Bipin Singh, Partner and Shri K. M. Mathew, Authorised Representative of the firm explained their proposal.

im, KASEZ has requested for permission for warehousing activity of additional items. Shri Bipin Singh, Partner and Shri K. M. Mathew, Authorised Representative of the firm explained their proposal. Shri Singh informed that they have requested for permission for warehousing of additional items. The Committee asked the partner about the activities undertaken by them in KASEZ. In reply, Shri Singh stated that last year they have done transactions of 8-9 containers and now they want to include some of the items for warehousing on behalf of their client and they have also submitted KYC of their client. The Committee further noted that the KYC of client submitted by the unit i.e. GST registration has already been cancelled w.e.f. 26.07.2024 and then why they have submitted such KYCs whose registration is no longer valid. In reply, Shri Singh stated that due to no work of their DTA client their KYC was cancelled and their DTA client is in the process to reinstate their GST registration. The Committee also noted that the unit is having rental dues of about Rs. 8.25 lakhs and directed the Partner of the firm to clear the rental dues within 15 days’ time failing which eviction proceedings will be initiated against the unit and also action for cancellation of their LoA under Section 16 of SEZ Act, 2005. 21

lear the rental dues within 15 days’ time failing which eviction proceedings will be initiated against the unit and also action for cancellation of their LoA under Section 16 of SEZ Act, 2005. 21

reject their proposal regarding additional items in warehousing activity with direction to the unit to first clear their outstanding rental dues and then come up for additional items with complete and valid KYC details of their client. Further, the Committee also directed the DC office to initiate action for eviction of unit’s premises if the unit does not clear the outstanding rental dues within 15 days’ time also action for cancellation of their LoA under Section 16 of SEZ Act, 2005. AGENDA ITEM NO. 207.3.6 Permission to warehouse 22 items under Warehousing service Activity

  • Request of M/s. International Warehousing & Trading, a unit of Trading/Ware housing activity in KASEZ. The Committee noted that M/s. International Warehousing & Trading, KASEZ has requested for permission for warehousing activity of additional item. Shri Kiran Singh Kochhar, Partner of the firm explained their proposal. Shri Kochhar informed that they have requested for permission for 22 items in warehousing activity. The Committee noted that the unit has been granted one time permission for 19 items for warehousing and asked the partner as to whether the items granted for one time permission have been received by them or not. In reply, Shri Kochar stated that for the item at Sr. No. 3 out of 400 units, 190 units are already in transit, for item at Sr. No.

ranted for one time permission have been received by them or not. In reply, Shri Kochar stated that for the item at Sr. No. 3 out of 400 units, 190 units are already in transit, for item at Sr. No. 7 out of 150 units, 23 units are already in transit and rest of the items they will receive within a weeks time. The Committee also noted that the unit is having rental dues of about Rs. 21.75 lakhs and asked the partner about delay in payment of their rental dues. In reply, Shri Kochar stated that they will clear rental dues within 2-3 working days. The Committee directed the Partner of the firm to clear the rental dues within 15 days’ time failing which eviction proceedings will be initiated against the unit. 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 subject to unit submitting KYC of their clients alongwith ITR of last 3 years on whose behalf they will warehouse goods and also subject to following conditions: 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 permitteckby the UAC. i) 22

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 permitteckby the UAC. i) 22

This clause will have overriding effect for any approval granted in LoA now or before. Further, the unit must ensure that they should have a tamper­ proof ERP/SAP/Tally system with provisions of CCTV with sufficient longer duration of storage & other equipments. Further, the transfer of goods from one FTWZ to another FTWZ shall not be allowed except in specific and exceptional cases after consideration by the UAC. 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. ii) iii) iv) v) vi) vii) viii) AGENDA ITEM NO. 207.3.7 & TABLE AGENDA ITEM NO. 207.4.1 Intimation for addition of items under Warehousing Activity; request by M/s. Naman Marketing, Plot No. 449/A, Sector- II, KASEZ. The Committee noted that M/s. Naman Marketing, KASEZ has requested for permission for warehousing activity of additional items. Shri Kamlesh Patel, Partner of the firm explained their proposal. Shri Patel informed that they have requested for permission for warehousing of additional items.

sing activity of additional items. Shri Kamlesh Patel, Partner of the firm explained their proposal. Shri Patel informed that they have requested for permission for warehousing of additional items. He further stated that one of the manufacturing unit of KASEZ wants to store their goods in their warehouse due to shortage of space. 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 subject to unit submitting KYC of their clients along with ITR of last 3 years 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 allowed to be warehoused and any restrictions on import/export 23 / '

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. Further, the unit must ensure that they should have a tamper­ proof ERP/SAP/Tally system with provisions of CCTV with sufficient longer duration of storage & other equipments.

in LoA now or before. Further, the unit must ensure that they should have a tamper­ proof ERP/SAP/Tally system with provisions of CCTV with sufficient longer duration of storage & other equipments. Further, the transfer of goods from one FTWZ to another FTWZ shall not be allowed except in specific and exceptional cases after consideration by the UAC. 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. ii) iii) iv) v) vi) vii) viii) AGENDA ITEM NO. 207,3.8 Permission to warehouse goods on behalf of Foreign/DTA clients - Request of M/s. S. R. Brothers, KASEZ. The Committee noted that M/s. S. R. Brothers, KASEZ has requested for permission for warehousing activity of additional items. No representative of unit appeared before the Committee to explain the proposal. The Committee noted that the unit has requested for warehousing of plastic items which the UAC is not permitting as per past precedent for warehousing. Therefore, the Approval Committee after due deliberation decided to reject their proposal. AGENDA ITEM NO. 207.3.9 Permission to warehouse goods on behalf of Foreign/DTA clients Request of M/s. Sujan Oil & Gas Infra Logistics, KASEZ. The Committee noted that M/s. Sujan Oil & Gas Infra Logistics, KASEZ has requested for permission for warehousing activity of additional items. 24

t of M/s. Sujan Oil & Gas Infra Logistics, KASEZ. The Committee noted that M/s. Sujan Oil & Gas Infra Logistics, KASEZ has requested for permission for warehousing activity of additional items. 24

Shri Vivin Mathew, Deputy Manager of the firm explained their proposal. Shri Mathew informed that they have requested for permission for warehousing of one additional item. The Committee after due deliberation decided to permit the additional item to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criterion and subject to unit submitting KYC of their clients along with ITR of last 3 years on whose behalf they will warehouse goods and also subject to following conditions: None of the items which are restricted or prohibited will be allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. This clause will have overriding effect for any approval granted in LoA now or before. Further, the unit must ensure that they should have a tamper­ proof ERP/SAP/Tally system with provisions of CCTV with sufficient longer duration of storage & other equipments.

in LoA now or before. Further, the unit must ensure that they should have a tamper­ proof ERP/SAP/Tally system with provisions of CCTV with sufficient longer duration of storage & other equipments. Further, the transfer of goods from one FTWZ to another FTWZ shall not be allowed except in specific and exceptional cases after consideration by the UAC. 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. i) ii) iii) iv) v) vi) vii) viii) AGENDA ITEM NO. 207.3.10 Monitoring of ANNUAL PERFORMANCE REPORT (APR) for the Financial Year 2021-22, 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. \
25

s, 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. \
25

The Committee perused the status, in respect of 298 units placed before them. The Committee noted out of 298 working units, 283 units have submitted APRs and 15 units have not submitted APRs for the year 2021- 22. Further, out of 283 units who have submitted APRs, 39 units have failed to achieve positive Net Foreign Exchange Earnings and out of 39 units who have failed to achieve positive NFE, 12 units have failed to achieve positive NFE in their lst& 2nd year of their 5 year block period; 25 units have failed to achieve positive NFE in 3rd and 4th year of their 5 year block period and 02 units have failed to achieve positive NFE in 5th year of their 5 year block period. The Committee noted that in respect of the NFE negative cases at the end of 5th year of their 5 year block period that SCN have already been issued in respect of 2 units and adjudications have also been completed.

ted that in respect of the NFE negative cases at the end of 5th year of their 5 year block period that SCN have already been issued in respect of 2 units and adjudications have 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 25 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) 2 units who have not achieved positive NFE at the five-year block period, SCN is being issued to both the units, (4)16 units of 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 was issued 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 3rd 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 3rdyear of their 5 year block period. To place the 12 units who failed to achieve positive NFE in their lst& 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 years beyond the time period of

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 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 15 erring units for imposition of penalty under FT (D&R) Act, 1992 read with Rule 54 of SEZ Rules, 2006. 1. 2. 3. 26 y /

of the 207th Unit Approval Committee Meeting of Kandla SEZ held on under the Chairmanship of Shri Dinesh Singh, Minutes 28.10.2024 at 11:00 hrs 4. 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 precautionary letters may be issued to all the KASEZ units to submit their APRs within the stipulated time period prescribed failing which penalty will be imposed on the units for late submission of APRs as per decision taken in the 203rd UAC meeting held on 28.06.2024. Further, it has been brought to the notice of the Committee that many of commenced their authorized operations within the the units have not validity period of their LoAs and remained non-operational. Therelore, the Approval Committee directed the DC office to initiate action for issuance of lapse order under Rule 19(5) of SEZ Rules, 2006/SCN to the non- operational units which have not commenced their authorized operation. AGENDA ITEM NO.

e DC office to initiate action for issuance of lapse order under Rule 19(5) of SEZ Rules, 2006/SCN to the non- operational units which have not commenced their authorized operation. AGENDA ITEM NO. 207.3.11 Ratification of request already approved in file Approval Committee ratified the permission granted to the following units by the Development Commissioner, KASEZ: The Permission letter issued Permission One Time granted for Name of Unit Sr. No. on 15.10.2024 Import of “Base Oil” falling under CTH 4000 MT as raw material Warehousing of goods - 19 items M/s. GKN Chemical India Pvt. Ltd., 1. 27101971 22.10.2024 M/s. International Warehousing Trading_____ 2. & TABLE AGENDA ITEM NO. 207.4.2 Permission Consolidation/Agreegator Approval - Request of M/s Milak Warehouse, KASEZ. FTWZ for of Goods from for various brands under Warehousing for transfer approved unit for trading, M/s Milak Warehouse, KASEZ is manufacturing and warehousing service activity subject to certain terms and conditions enumerated in the LoA. The unit has been granted Letter of Approval no. 1836/2001-02 dated 10.08.2001, as amended. an said unit has requested for approval for transfer of goods from FTWZ to other FTWZ. The unit has stated that - Now the Kandla SEZ vide Letter of

  1. They have been approved and operating in Approval No. KASEZ/IA/1836/2001-02 and amendments thereof for 27

ds from FTWZ to other FTWZ. The unit has stated that - Now the Kandla SEZ vide Letter of

  1. They have been approved and operating in Approval No. KASEZ/IA/1836/2001-02 and amendments thereof for 27

Minutes of the 207th Unit Approval Committee Meeting of Kandla SEZ held on Manufacturing, Trading as well as Warehousing Services as per Rule 18(5) /76 of SEZ Rules 2006 2) They are Star Export House (UDINSTAT00307395AM24) Registered Unit as well as holding ISO 9001 — 2015 / FASSAI certifications. Further, they are one of the only few registered warehouser under US- FDA. 3) They as well as their associate concerns have been receipt of highest export award since more than a decade in Kandla SEZ for Packaging and Services including Green unit. 4) They have been the recipient of Rashtriya Udyog Ratan Award as well as Quality Brand India Award for quality products and 5) They have been positive forex earners through our operations since inception and that there have not been any negative or adverse findings. 6) They have had unblemished positive performance operations since inception with no adverse findings as well as for our associate firms. services. across our 7) The products under consideration are exportable under the current foreign trade policy. 8) Their clientel includes prominent brands like UNILEVER, HUNTSMAN, BASF, INEOS, HIMALAYAN, KITCHEN XPRESS, MOTHERSON 9) That for the services offered to the prominent brand owners for their product export;

lientel includes prominent brands like UNILEVER, HUNTSMAN, BASF, INEOS, HIMALAYAN, KITCHEN XPRESS, MOTHERSON 9) That for the services offered to the prominent brand owners for their product export; they have been awarded warehousing service approval along with packaging and labelling as well as professional services in Kandla SEZ; comprising authorized operations as prescribed under the FTWZ Policy framed under the SEZ Act/Rules as well as defined under Rule 27(1) for transfer of goods. With an investment spread over 400000 Lakh Sq. Ft. of self - constructed SEZ facility and infrastructure and machineries sufficiently capable of handling diversified products for packaging for its clients lead through with its strong and motivated team of than 800+ employees having direct and indirect employment; the group proudly handles cargo worth 120 Millions per month average. freely importable and freely 10) more on 11) That the service activities are not just limited to warehousing but consist of packing, promo-packs, kit assembly, retail packs, consolidations and aggregator for which needful facilities have as well been created viz-a-viz the infra-structure, packaging machines, trained and motivated workforce over and above the self-constructed state of the art facilities. That for the services offered including packaging - kit assembly

  • promo packs, consolidation and aggregator; the products sourced through the brand owners supply source - domestically, imported and/or from other SEZ/EOU’s.

ed including packaging - kit assembly

  • promo packs, consolidation and aggregator; the products sourced through the brand owners supply source - domestically, imported and/or from other SEZ/EOU’s. basis the customer requirement or consolidated in bulk and accordingly exported in mix lots.

are These are then packed 28

Further, as consolidator/aggregator many prominent brand owners operate with them as their “distribution hup” wherein through our facilities the goods are consolidated and distributed globally across, including to domestic supply chain. Shri Vivek Milak, Partner of the firm explained their proposal. Shri Milak stated that they are providing ancillary and support services to many of the multinational companies like Unilever, Procter & Gamble, etc. for consolidation, aggregations, packing, repacking. Further, Shri Vivek Milak stated that recently the Under Secretary, SEZ Section, Department of Commerce, issued an Instruction No. 117 dated 24.09.2024 which does not authorise them to transfer the goods from one FTWZ to another FTWZ. That has adversely affected their business in KASEZ. He further stated that they are the first warehousing unit holding USFDA & FSSAI approval and undertaking consolidation/aggregations/packing/repacking on behalf of their multinational clients and the goods are distributed globally across including to domestic supply chain and other SEZ manufacturers/FTWZ as well as EOU. Shri Milak further stated that in condition no. (vi) of the recently issued Instruction No.

uted globally across including to domestic supply chain and other SEZ manufacturers/FTWZ as well as EOU. Shri Milak further stated that in condition no. (vi) of the recently issued Instruction No. 117, it has been mentioned that the transfer of goods from one FTWZ to another FTWZ should not be allowed except in specific and exceptional cases after consideration by the UAC. Therefore, they have requested for permission to transfer the goods from Kandla SEZ to other FTWZ and vice-versa. The Committee noted that to regularize the functioning of FTWZ and warehousing units, the Department of Commerce has issued these guidelines. For operational framework of FTWZ and Warehousing units in SEZ, a condition has been imposed that the transfer of goods from one FTWZ to another FTWZ should not be allowed except in specific and exceptional cases after consideration by the UAC. In the instant case the Committee directed Shri Milak to submit details of their brand MNCs/documents and associates on whose behalf they will be undertaking operations of consolidation/aggregation/packing/repacking so that the UAC can take a decision for consideration of their specific request for transferring of goods from Kandla SEZ to other FTWZ and vice-versa. defer their proposal with direction to the unit to submit details of their brand MNC clients for consideration of their specific request. 29

of goods from Kandla SEZ to other FTWZ and vice-versa. defer their proposal with direction to the unit to submit details of their brand MNC clients for consideration of their specific request. 29

TABLE AGENDA ITEM NO. 207.4.3 of Goods from FTWZ for various brands under Warehousing Permission for transfer Consolidation/Agreegator for Approval - Request of M/s. Vishvajoti Packaging, a unit of Warehousing activity fit Packaging service activity, KASEZ. M/s. Vishvajoti Packaging, Plot No. 453/472, Sector-1, KASEZ, is an approved unit for Warehousing and Packaging service activity. The unit has been granted Letter of Approval dated 22.06.2007, issued vide F.No. KASEZ/IA/07/2007-08, as amended and is valid up to 20.04.2024. Now the said unit has requested for approval for transfer of goods from FTWZ to other FTWZ and vice-versa. The unit has stated that - • They have been approved and operating in Kandla SEZ vide Letter of Approval No. KASEZ/IA/07/2007-08/3229 as Service Providing Unit for Warehousing and Packaging for units of SEZ and/ or abroad • That they are holding ISO 9001 - 2015 / GMP / ISO 14001:2015 / FDA FSC / FASSAI certifications. • That their associate concerns have been recipient of highest export award since more than a decade in Kandla SEZ for Packaging and Services including Green unit. • That their associate concerns have been the recipient of Rashtriya Udyog Ratan Award as well as Quality Brand India Award for quality products and services. • They have been positive forex earners through our operations since

have been the recipient of Rashtriya Udyog Ratan Award as well as Quality Brand India Award for quality products and services. • They have been positive forex earners through our operations since inception and that there have not been any negative or adverse findings. • There they have had unblemished positive performance operations since inception with no adverse findings as well as for our associate firms. across our freely importable and • That the products under consideration are freely exportable under the current foreign trade policy. • That their clientel includes prominent brands like UNILEVER, HUNTSMAN, BASF, INEOS, MOTHERSON ... to name a few. HIMALAYAN, KITCHEN XPRESS, 30

• That for the services offered to the prominent brand owners for their product export; they have been awarded warehousing service approval along with packaging and labelling as well as professional services in Kandla SEZ; comprising authorized operations as prescribed under the FTWZ Policy framed under the SEZ Act/Rules as well as defined under Rule 27(1) for transfer of goods. • With the group investment spread over 400000 Lakh Sq. Ft.

operations as prescribed under the FTWZ Policy framed under the SEZ Act/Rules as well as defined under Rule 27(1) for transfer of goods. • With the group investment spread over 400000 Lakh Sq. Ft. of self

  • constructed SEZ facility and infrastructure and machineries sufficiently capable of handling diversified products for packaging for its clients lead through with its strong and motivated team of more than 800+ employees having direct and indirect employment; the group proudly handles cargo worth 120 Millions per month on average. • That the service activities are not just limited to warehousing but consist of packing, promo-packs, kit assembly, retail packs, consolidations and aggregator for which needful facilities have as well been created viz-a-viz the infra-structure, packaging machines, trained and motivated workforce over and above the self-constructed state of the art facilities. • That for the services offered including packaging - kit assembly - promo packs, consolidation and aggregator; the products are sourced through the brand owners supply source - domestically, imported and/or from other SEZ/EOU’s. These are then packed basis the customer requirement or consolidated in bulk and accordingly exported in mix lots. Further, the unit has also stated that as consolidator/aggregator many prominent brand owners operate with them as their “distribution hub” wherein through their facilities the goods are consolidated and distributed globally across, including to domestic supply chain and other SEZ Manufacturers/FTWZ as well as EOU.

“distribution hub” wherein through their facilities the goods are consolidated and distributed globally across, including to domestic supply chain and other SEZ Manufacturers/FTWZ as well as EOU. As they are trading in various packaging materials, some of specialty packaging products supplied to manufacturers in SEZ/EOU for their export packaging and sourced from overseas suppliers, who in-turn supply the same through their distributers appointed in India including from other SEZ/FTWZ. Shri Vivek Milak, Authorised Representative of the firm explained their proposal. Shri Milak stated that they are providing ancillary and support services to many of the multinational companies like Unilever, Procter & Gamble, etc. for consolidation, aggregations, packing, repacking. Further, Shri Vivek Milak stated that recently the Under Secretary, SEZ Section, Department of Commerce, issued an Instruction . 117 dated 31

24.09.2024 which does not authorise them to transfer the goods from one FTWZ to another FTWZ. That has adversely affected their business in KASEZ. He further stated that they are the first warehousing unit holding USFDA & FSSAI approval and undertaking consolidation/aggregations/ packing/repacking on behalf of their multinational clients and the goods are distributed globally across including to domestic supply chain and other SEZ manufacturers/FTWZ as well as EOU. Shri Milak further stated that in condition no. (vi] of the recently issued Instruction No.

buted globally across including to domestic supply chain and other SEZ manufacturers/FTWZ as well as EOU. Shri Milak further stated that in condition no. (vi] of the recently issued Instruction No. 117, it has been mentioned that the transfer of goods from one FTWZ to another FTWZ should not be allowed except in specific and exceptional cases after consideration by the UAC. Therefore, they have requested for permission to transfer the goods from Kandla SEZ to other FTWZ and vice-versa. The Committee noted that to regularize the functioning of FTWZ and warehousing units, the Department of Commerce has issued these guidelines. For operational framework of FTWZ and Warehousing units in SEZ, a condition has been imposed that the transfer of goods from one FTWZ to another FTWZ should not be allowed except in specific and exceptional cases after consideration by the UAC. In the instant case the Committee directed Shri Milak to submit details of their brand MNCs/documents and associates on whose behalf they will be undertaking operations of consolidation/aggregation/packing/repacking so that the UAC can take a decision for consideration of their specific request for transferring of goods from Kandla SEZ to other FTWZ and vice-versa. defer their proposal with direction to the unit to submit details of their brand MNC clients for consideration of their specific request. TABLE AGENDA ITEM NO. 207.4.4 Cancellation of Letter of Approval granted to M/s. Rekha Superfine Exporters, a unit for manufacturing, trading and warehousing activity, KASEZ. M/s.

specific request. TABLE AGENDA ITEM NO. 207.4.4 Cancellation of Letter of Approval granted to M/s. Rekha Superfine Exporters, a unit for manufacturing, trading and warehousing activity, KASEZ. M/s. Rekha Superfine Exporters, is an approved unit for manufacturing activity, trading activity of Handicrafts and all items except plastic waste/scrap, second hand clothing, metal scrap, polyester yarn, prohibited, canalized and restricted items and warehousing service activity in KASEZ vide LoA No. KASEZ/IA/1930/2003-04/1056 dated 02.05.2003, as amended, and their LoA was valid upto 18.06.2023. The Additional Director, Directorate of Revenue Intelligence, Ludhiana Zonal Unit, Ludhiana had forwarded a letter dated 19.04.2023 issued from F. No. DRI/LDZU/856/INT-12/2023/356 to this office informing that DRI, LDZU is investigating a case corresponding to M/s. Rekha Superfine 32

Exporters, KASEZ and an intelligence was developed that the said SEZ unit was exporting fictitious oleoresin and diverting the imported black pepper from KASEZ in violation of permission granted by KASEZ Customs. Further, the Ludhiana Zonal Unit had requested this office to initiate the procedure for cancellation of the Letter of Approval granted to M/s. Rekha Superfine Exporters, KASEZ under Section 16 of the SEZ Act, 2005. Based on the report received from the Additional Director, Directorate of Revenue Intelligence, Ludhiana Zonal Unit, Ludhiana, DC office had issued Show Cause Notice No. KASEZ/IA/1930/2003-04/Vol.I/1505 dated 22.05.2023 to M/s.

om the Additional Director, Directorate of Revenue Intelligence, Ludhiana Zonal Unit, Ludhiana, DC office had issued Show Cause Notice No. KASEZ/IA/1930/2003-04/Vol.I/1505 dated 22.05.2023 to M/s. Rekha Superfine Exporters, KASEZ for indulging in export of fictitious oleoresin and diverting the imported black pepper from KASEZ and has contravened and violated the conditions of LoA, BLUT and provisions of SEZ Rules, 2006. The Committee deliberated on the issue and noted that the unit has been granted personal hearings number of times with regard to SCN dated 22.05.2023 and the last personal hearing was granted to the unit on 22.08.2024 however nobody appeared for personal hearing nor any reply has been submitted by the unit. Thus, this is a fit case for cancellation of their LoA under Section 16 of the Act for indulging in export of fictitious oleoresin and diverting the imported black pepper from KASEZ and violation of terms and conditions of LoA, BLUT and provisions of SEZ Rules, 2006. cancel the LoA issued to the unit and authorised the Development Commissioner, KASEZ being the Adjudicating Authority to adjudicate the Show Cause Notice dated 22.05.2023 issued to the unit. TABLE AGENDA ITEM NO. 207.4.5 Approvals granted by the Unit Approval Committee for recycling of used oil/reclamation of used oil to M/s. Royal Petro Oil Refinery LLP, KASEZ and M/s.

ed to the unit. TABLE AGENDA ITEM NO. 207.4.5 Approvals granted by the Unit Approval Committee for recycling of used oil/reclamation of used oil to M/s. Royal Petro Oil Refinery LLP, KASEZ and M/s. Hindustan Oil Industries, KASEZ. During the Audit of Office of the Development Commissioner, KASEZ for the period 2019-21, the Senior Audit Officer (CRA-I) made an observation that permission for import of “Used Oil for recycling” granted to M/s. Royal Petro Oil Refinery LLP, KASEZ and M/s. Hindustan Oil Industries, KASEZ was a case of disregard and misrepresentation of SEZ Rules. The said observations were communicated to the Office of Development Commissioner, KASEZ vide Para 01 of the LAR 13/2021-22 dated 03.11.2021. The detailed audit observations that have been brought to the notice of the department for consideration are as under: - 33

fil M/s. Royal Petro Oil Refinery LLP (earlier M/s. Radiant Recycler LLP) • Rule 18 of the SEZ Rules, 2006 read with its clause (4) and sub­ clauses there under inter-alia provide that no proposal for setting up of unit in SEZ shall be considered for “Import of other used goods for recycling”. • Thus, the rules, without any ambiguity, disallow recycling activity in SEZs, to new Units applying for this, with effect from the date of publication of these Rules in Official Gazette (i.e.

ng”. • Thus, the rules, without any ambiguity, disallow recycling activity in SEZs, to new Units applying for this, with effect from the date of publication of these Rules in Official Gazette (i.e. from 10.02.2006). • It has been noticed that several consignments of “Used Engine/Motor Oil for recycling” have been imported by said SEZ Unit and the activity of “Import of Used goods for recycling” has strictly been prohibited vide Rules cited above. • In-principle Letter of Approval (LoA) was granted to the Unit despite specific mention that the proposed activities included recycling of Used Oil. • Department’s action to issue LoA dated 29.01.2016 is wrong for the following reasons:

Recycling any material is a manufacturing process, but when the recycling of used goods is prohibited in law, it means that the manufacturing process of recycling is prohibited in law. Though the second proviso of clause (d) of Rule 18(4) of the SEZ Rules, permits the reconditioning, repair and re-engineering of imported goods, the permission is subject to the condition that exports shall have one to one correlation with imports and all the reconditioned or repaired or engineered product and scrap or remnants or waste shall be exported and none of these goods shall be allowed to be sold in the Domestic Tariff Area or destroyed. • In the instant case, it has been informed that after obtaining lubricating oil and gas oil from the used oil, the fuller earth (sand) will waste which will be used for making bricks and also used for construction, land filling.

en informed that after obtaining lubricating oil and gas oil from the used oil, the fuller earth (sand) will waste which will be used for making bricks and also used for construction, land filling. Thus, these wastes were not exported. • Further, the one to one correlation with the imported used oil is also unlikely to happen. These goods were consumption. • Accordingly, the issuance of Licence was in utter dis-regard and misinterpretation of rules. • The LoA was wrong for the reasons that it was used Oil which is debarred under Clause (d) of Rule 18(4) of the SEZ Rules, 2006 and was used for recycling. remain as a used in the DTA/self (iil M/s. Hindustan Oils Industries s/V' 34

• Rule 18 of the SEZ Rules, 2006 read with its clause (4) and sub­ clauses there under inter-alia provide that no proposal for setting up of unit in SEZ shall be considered for “Import of other used goods for recycling”. • Thus, the rules, without any ambiguity, disallow recycling activity in SEZs, to new Units applying for this, with effect from the date of publication of these Rules in Official Gazette (i.e. from 10.02.2006). • It has been noticed that several consignments of “Used Engine/Motor Oil for recycling” have been imported by said SEZ Unit and the activity of “Import of Used goods for recycling” has strictly been prohibited vide Rules cited above. • Letter of Approval was issued to the unit for manufacturing of Light solvent, LDO, Fuel Oil, etc.

ity of “Import of Used goods for recycling” has strictly been prohibited vide Rules cited above. • Letter of Approval was issued to the unit for manufacturing of Light solvent, LDO, Fuel Oil, etc. Subsequently, when the Unit requested to allow “vacuum distillation for reclamation of Used Oil”, permission for the same was granted to them. • Audit observed that despite the fact that “Import of Used goods for recycling” has expressly been restricted; permission for the granted to them. • The Unit also Imports the goods specifically mentioning that the imported goods are “Used Oils for recycling” • The LoA was wrong for the reasons that it was used Oil which is debarred under Clause (d) of Rule 18(4) of the SEZ Rules, 2006 and was used for recycling. same was On the basis of above audit observations, this office had issued Show Cause Notices dated 30.12.2022 to both the above units and also personal hearings in both the SCNs have been held. During the written and oral submissions, both the units have submitted that they are doing manufacturing activity and not recycling activity as contended by the CRA Audit. In view of submissions made by both the units and the authorized activities of both the units’ falls under manufacturing activity or recycling activity cannot be ascertained as recycling is not defined under the SEZ Act/SEZ Rules and also in the Foreign Trade Policy.

ities of both the units’ falls under manufacturing activity or recycling activity cannot be ascertained as recycling is not defined under the SEZ Act/SEZ Rules and also in the Foreign Trade Policy. A reference was made to the Ministry of Commerce & Industry, Department of Commerce, SEZ Section for examination of the issue in consultation with Department of Legal Affairs so that the Show Cause Notices issued by this office may be decided and also a uniform view may be taken whether such units may be allowed or not in the SEZ. The Ministry of Commerce & Industry, Department of Commerce, SEZ Section vide letter dated 10.07.2024 has stated that with regard to audit objections, both the units have asserted that they are manufacturing units and not recycling units as their activities use are different and the units have also requested to verify the same through physical inspection and furthermore, M/s. Royal Petro Oil Refinery has stated that eir file was 35 /

their activities use are different and the units have also requested to verify the same through physical inspection and furthermore, M/s. Royal Petro Oil Refinery has stated that eir file was 35 /

referred to DoC before approval was granted to them in 2016. Ministry has requested that to ascertain their activity, a physical inspection of both the units may be done and as stated by M/s. Royal Petro Oil Refinery LLP, the details with regard to their referred file to DoC may also be examined and accordingly, appropriate action may be taken in respect to the audit objection. The Committee was informed that based on Ministry’s direction, a Committee of 3 Officers of KASEZ was constituted to visit both the above units for physical verification and the Committee has visited both the units and recorded their observation with regard to procedure followed in both units. The Committee also gone through Hon’ble CESTAT Judgement in case of Collector Vs Mineral Oil Corporation [1999(114) ELT 166] which upheld by Hon’ble Supreme Court [2002(140) ELT 248(SC)], which describe that waste oil processing after become lubricating oil but this process would not amount to manufacture. Further, the CBIC has also issued Circular No. 1024/12/2016-CX dated.

(SC)], which describe that waste oil processing after become lubricating oil but this process would not amount to manufacture. Further, the CBIC has also issued Circular No. 1024/12/2016-CX dated. 11.04.2016 in this regard that waste oil after processing may become lubricating oil but this process would not amount to manufacture. Further, the Committee gone through procedure and definition described for processing of used oil/ waste Oil in Hazardous Waste Management Act and also as per norm of Central Pollution Control Board and Gujrat Pollution Control Board which describe it re-recycling of used oil/ waste oil. Thus, the Committee was of the view that recycling process or reclamation process is nothing but re-refining process and is not a manufacturing process and thus the permission granted for import of used/ waste oil must be withdrawn. Therefore, the Approval Committee after due deliberations decided to withdraw the permissions granted to the unit for import of used oil and directed the DC office to issue amendment to the Letter of Approvals/Broad­ banding permission issued to both the units. Further, the Committee also directed the DC office to adjudicate the SCNs issued in the matter. TABLE AGENDA ITEM NO.

t to the Letter of Approvals/Broad­ banding permission issued to both the units. Further, the Committee also directed the DC office to adjudicate the SCNs issued in the matter. TABLE AGENDA ITEM NO. 207.4.6 Visit Report of the Deputy Commissioner of Customs, KASEZ with regard to the Warehousing units allowed for providing warehousing services for the goods “worn/used clothing”. The Committee was informed that the UAC in its 200'hmeeting held on 28.03.2024 had deliberated on the issue of Kandla Special Economic Zone Industries Association request to allow packih^/Apacking activity to such 36

Minutes of the 207* Unit Approval Committee Meeting of Kandla SEZ held on warehousing units under Rule 18(5) and Rule 76 of the SEZ Rules and the UAC decided to constitute a Committee to examine the issue with respect to the decisions taken by various UACs, instructions issued by DoC and SEZ Act & Rules provisions and submit its report to the DC office and the DC office will decide the matter on file. On the basis of Committee report submitted, the DC office had requested the Deputy Commissioner of Customs, KASEZ to ensure a periodical monthly visit (in surprise mode) by AOs/POs and record of such visit alongwith photographs to be made to ensure that no subletting or manufacturing takes place in these warehouses as well the warehouses allowed for storing plastic scrap. Now, the Deputy Commissioner of Customs, KASEZ has submitted the Visit Report of the warehousing units allowed for providing warehousing services for the goods “worn/used clothing” and “plastic scrap”.

the Deputy Commissioner of Customs, KASEZ has submitted the Visit Report of the warehousing units allowed for providing warehousing services for the goods “worn/used clothing” and “plastic scrap”. The Committee perused the Report and noted that at present no activity beyond the LoA has been undertaken by any warehousing units allowed for providing warehousing services of “worn/used clothing” and “plastic scrap”. Other observations 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. 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. The meeting ended with a vote of thanks to the Chair. A ; (Diilesi^Siii^h) Development Commissioner Kandla Special Economic Zone 37

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