IN FORCE SEZ / EOU / FTWZ

नोएडा और ग्रेटर नोएडा एसईजेड में यूनिट अनुमोदन समिति की बैठक का कार्यवृत्त 12/06/2020 पर आयोजित

Reliability

In force — no superseding record on file.

Document text

MIN. OF COMMERCE & INDUSTRY, DEPTT. OF COMMERCE : Zé4 ~ OFFICE OF THEGOVERNMENTDEVELOPMENT OF INDIACOMMISSIONER Eo NOIDA SPECIAL ECONOMIC ZONE ve fen NOIDA DADRI ROAD, PHASE-II, NOIDA-201305 DISTT. GAUTAM BUDH NAGAR (UP)

To 0, 10/20/2007-SEZ/

ferta: 29/06/2020

aa Fy,

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were,

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elses oy frare are

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----- Start of picture text ----- Terre fare aah (Terres) - HST At we ofa eat aqare Fa dase | ----- End of picture text -----

TeCity Office : State Trading CorporationZone Office of| 0120India - Ltd.4"3021444Floor, -446Jawahar(4 Lines), Vyapar Fax:Bhawan, 2562314,2567278Tolstoy Marg, New°°Dethi-110001~~~ E-mail : < de@nsez.gov.in > : Website: < www.nsez.gov.in >

& seaalaa ater HY fee 12/06/2020 at sralora doa ar aretger |

ATs, Yer AlesT Bik Wut F fava Froft farts snfties dal o Uae A Sto uco glo iwc, fawra sige, aust fasts onffe aa wt sieaata a srqaies afta at festa 12.06.2020 w aluex 12:00 aa fafeat HrbRin & area @ arated dow wT ereiga | The following members of Approval Committee participated in the meeting through video conferencing:-

(i) Shri S. S. Shukla, Joint Development Commissioner, NSEZ (physically present in NSEZ).
(ii) Shri Shyopat Singh, Asstt. Commissioner (Customs), Noida (present through video conferencing).
(iii) Shri Sachin Jain, Asstt. Commissioner, DIC, Noida Shri Sachin Jain, Asstt. Commissioner, DIC, Noida

yopat Singh, Asstt. Commissioner (Customs), Noida (present through video conferencing).

(iii) Shri Sachin Jain, Asstt. Commissioner, DIC, Noida Shri Sachin Jain, Asstt. Commissioner, DIC, Noida
(iv) Shri Chaman Lal, FTDO, O/o Addl. DGFT, CLA, New Delhi (present through video conferencing).
(v) Ms. Sandhya Marurya, Income Tax Officer, Noida (present through video conferencing). (vi) Representative of SEZ Developers concerned, Special Invitee (present through video conferencing).

“ Besides, during the meeting i) Shri Rajesh Kumar, DDC, ii) Shri S.K. Tyagi, Specified Officer (In-Charge), iii) Shri Prakash Chand Upadhyay, ADC also participated in the meeting through video conferencing to assist the Approval Committee. “ At the outset, the Chairman welcomed the participants. After brief introduction, each items included in the agenda were taken up for deliberation one by one. After detailed deliberations amongst the members of the Approval Committee as well as interaction with the applicants / representatives of the developers / units, the following decisions were taken:-

1. feretias 15.05.2020 ar arratfota stepteat BAe ahr dow at wre Hr sepTaeet :-

The Approval Committee was informed that no reference in respect of the decisions of the Approval Committee held on 15.05.2020 was received from any of the members of the Approval Committee or Trade and therefore, Minutes of the Meeting held on 15.05.2020 were ratified.

Ho vadive teattatsttsr foro, arrHal HT cee Wo 3A, 3B& 2C, Aeet- 126, aAlwsr (SAT Weer) aer airgset / angdigver fasts anfater ata af arta Warr & fore aaah Ay ae H seat HT TEs Aeaeeht |

2.1. It was brought to the notice of the Approval Committee that M/s. HCL Technologies Ltd., Developer of IT/ITES SEZ at Plot No. 3A, 3B & 2C, Sector- 126, Noida (U.P) had submitted proposal for approval of list of materials to carry on following default authorized operations in their SEZ:-

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----- Start of picture text ----- " S. No. at default list | Estimated Cost N Name of Authorized Operation of Auth. Opr. as per (Rupees in °. Inst. No. 50 & 54 lakhs) i) | Water treatment plant, water supply lines 02 144.50 (dedicated lines up to source), sewage lines, storm _ water drains and water channels of appropriate - Leek. Page 1 of 23 ----- End of picture text -----

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ce), sewage lines, storm _ water drains and water channels of appropriate - Leek. Page 1 of 23 ----- End of picture text -----

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----- Start of picture text ----- abesr, Bex attest ake eotk a Pere feratt fader aria att il) rc a sealgaalate HY Rete 12/06/2020at sraifara dow Hr aretger | Fire protection system with sprinklers, fire and 07 295.82 smoke detectors. Tota | 880.92 ----- End of picture text -----

2.2. Mr. D.K. Sharma, Associate Director of M/s. HCL Technologies Ltd. joined the meeting through video conferencing and explained the requirement of proposed materials.

2.3. After due deliberations, Approval Committee approved the proposed list of materials.

Fo VAMSHSer Teattettaltarero, eHrTHalHT Celle eaT TZ-2 & 2A, Aeet-caHglet, PEC AYTST (TAT Teer) feare ager / argdigver farety after ata a arftreper aareret & fore ara fr eel ah stealer HT EAA

3.1. It was brought to the notice of the Approval Committee that M/s. NIIT Technologies Ltd., Developer of IT/TES SEZ at Plot No. TZ-02 & 2A, Sector-Techzone, Gr. Noida (Uttar Pradesh) had submitted proposal for approval of list of materials to carry on following default authorized operations

in their SEZ:-

SEZ at Plot No. TZ-02 & 2A, Sector-Techzone, Gr. Noida (Uttar Pradesh) had submitted proposal for approval of list of materials to carry on following default authorized operations

in their SEZ:-

|eS|Authorized Operation|SI. No. at default|list of | Estimated Cost|list of | Estimated Cost|
|---|---|---|---|---|
|No.||materials as per|Inst.|(Rs in Lakhs)|
|||No. 50 & 54|||
|(i)|Construction<br>of<br>all<br>type<br>of<br>buildings<br>in|22||162.54|
||processing<br>area<br>as<br>approved<br>by<br>the<br>Unit||||
||Approval Committee.||||
|(ii)|Electrical, Gas and Petroleum Natural Gas<br>Distribution Network including necessary sub-|04||114.99|
||stations<br>of<br>appropriate<br>capacity,<br>pipeline||||
||network etc.||||
|(iii) <br>(iv)||AirConditioning ofProcessing area.<br>|Access Control and Monitoring System.|||78.00<br>63.75|
|(v)|Fire protection system with sprinklers, fire and|07||7.40|
|(vi)|_| smoke detectors.<br>|Cafeteria<br>/ Canteen for staff in processing|||10.00|
||area.||||
|(vii)||Telecom and other communication<br>facilities|05||15.00|
|—_| including internet connectivity.<br>oe||||451.68|
|3.2.|Shri Rahul Sood, Sr. V.P. & Shri Mukesh Chauhan, Sr. Manager of M/s. NIIT Technologies||||
|Limited|Limited joined the meeting through video conferencing|and explained the requirement of proposed|||
|materials.|materials.||.||

3.2. Shri Rahul Sood, Sr. V.P. & Shri Mukesh Chauhan, Sr. Manager of M/s. NIIT Technologies Limited joined the meeting through video conferencing and explained the requirement of proposed materials. .

. Shri Rahul Sood, Sr. V.P. & Shri Mukesh Chauhan, Sr. Manager of M/s. NIIT Technologies Limited joined the meeting through video conferencing and explained the requirement of proposed materials. .

3.4. After due deliberations, Approval Committee approved the proposed list of materials except ‘Dishwasher’ proposed under the authorised operation namely “Cafeteria / Canteen for staff in processing area” (Annexure-V1).

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Page 2 of23

atesr, dex abear site mort a hearer Frat faethe arfifer att
a wage aetter HY fear 12/06/2020 at siratforer doar a aretger |
1. We-frarrnal, to cect avete saerae we fero arate sat swieaH We feo a calcHo 21 Arex eaaita-4, ex atest (Jax waar) A Raa anséet ansdiéva fate ante aa A aiflHa Tareas H fore ara ft edt A sepaleet FT WEA |

It was brought to the notice of the Approval Committee that M/s. Trustone Wegmans Developers Pvt. Ltd., Co-developer of IT/TES SEZ of M/s. Artha Infratech Pvt. Ltd. at Plot No. 21, Sector-Techzone-IlV, Greater Noida, had submitted proposal for approval of list of materials to carry on following default authorized operations in the said SEZ:-

==> picture [491 x 213] intentionally omitted <==

Greater Noida, had submitted proposal for approval of list of materials to carry on following default authorized operations in the said SEZ:-

==> picture [491 x 213] intentionally omitted <==

----- Start of picture text ----- S.No. Name of Authorized Operations SI.No at default list of | Estimated Cost materials as per Inst. (Rs. in lakhs) No.50 and 54 (i). | Construction of all type of buildings in 22 361.70 processing area as approved by the Unit Approval Committee. __ (ii). | Air Conditioning of Processing area. 247.78 (iii). | Electrical, Gas and Petroleum Natural Gas 04 188.51 Distribution Network including necessary sub- stations of appropriate capacity, pipeline network - (iv). |Telecometc. and other communication facilities 05 88.28 including internet connectivity. Totals| 886.27 ----- End of picture text -----

4.2. It was informed that the Co-developer has submitted Quarterly Report for the period upto December, 2019 & Half Yearly Report for the period upto September, 2019, which have been forwarded to CA firm, NSEZ for scrutiny. However, Quarterly Report for the period Jan-March, 2020 & Half Yealry Report for the period Oct’2019-March’2020, are awaited.

4.3. After due deliberations, Approval Committee approved the proposed list of materials. The Approval Committee directed to issue reminder to the Co-developer to expedite submission of Quarterly Report for the period Jan-March, 2020 & Half Yearly Report for the period Oct'2019March’2020.

e Approval Committee directed to issue reminder to the Co-developer to expedite submission of Quarterly Report for the period Jan-March, 2020 & Half Yearly Report for the period Oct'2019March’2020.

we-fanradt, tc tt ua of geradua afar wiede fefres arate set gwIeH we foro & valeHe 21 aaey-tnaa-4, Pex atest (Jat veer) A Reva asi sansdisea fate anise aa A aidtea area & fore area Ar at BH atepAleet HT WEATA |

5.1. It was brought to the notice of the Approval Committee that M/s. P.L.G. Incubation Services Pvt. Ltd., Co-developer of IT/ITES SEZ of M/s. Artha Infratech Pvt. Ltd. at Plot No. 21, SectorTechzone-IlV, Greater Noida, had submitted proposal for approval of list of materials to carry on following default authorized operations in the said SEZ:S.No. Name of Authorized Authorized Operations SI.No at default list of | Estimated Cost materials as per Inst. (Rs. in lakhs) No.50 and 54

” ? : (| wr. Page 3 of 23 23

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horized Operations SI.No at default list of | Estimated Cost materials as per Inst. (Rs. in lakhs) No.50 and 54

” ? : (| wr. Page 3 of 23 23

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----- Start of picture text ----- 5.1. It was brought to the notice of the Approval Committee that M/s. P.L.G. Incubation Services Pvt. Ltd., Co-developer of IT/ITES SEZ of M/s. Artha Infratech Pvt. Ltd. at Plot No. 21, Sector- Techzone-IlV, Greater Noida, had submitted proposal for approval of list of materials to carry on following default authorized operations in the said SEZ:- S.No. Name of Authorized Authorized Operations SI.No at default list of | Estimated Cost materials as per Inst. (Rs. in lakhs) No.50 and 54 ” ? : (| wr. Page 3 of 23 23 a ----- End of picture text -----

||||||||ahesr,tex abear site aatt a Reece farsi Raabe airfitar abt<br>&seqalaa<br>ater BF faerie12/06/2020<br>at srattorr dow aH aredger||ahesr,tex abear site aatt a Reece farsi Raabe airfitar abt<br>&seqalaa<br>ater BF faerie12/06/2020<br>at srattorr dow aH aredger||
|---|---|---|---|---|---|---|---|---|
|(i).||Construction<br>of<br>all|type|of|buildings||in|22|263.45|
||processing<br>area<br>as|approved||by|the|Unit|||
||Approval Committee.||||||||
|_ (ii).||AirConditioning ofprocessing||area|||||243.78|
|(iii).|Telecom and other communication<br>including internet connectivity.||||facilities||05|88.28|
|a|||||||||

val Committee.|||||||| |_ (ii).||AirConditioning ofprocessing||area|||||243.78| |(iii).|Telecom and other communication including internet connectivity.||||facilities||05|88.28| |a|||||||||




5.2. It was informed that the Co-developer has submitted Quarterly Report for the period upto December, 2019 & Half Yearly Report for the period upto September, 2019, which have been forwarded to CA firm, NSEZ for scrutiny. However, Quarterly Report for the period Jan-March, 2020 & Half Yealry Report for the period Oct’2019-March’2020, are awaited. 

5.3. After due deliberations, Approval Committee approved the proposed list of materials. The Approval Committee directed to issue reminder to the Co-developer to expedite submission of Quarterly Report for the period Jan-March, 2020 & Half Yearly Report for the period Oct’2019March'2020. 

6. Ho eyota Breda cealteitattatforo Hr ato aiteretorer fersere wh Vigde ferfres H cote WEA -07 Weer - 144, atest (sat Geer) A Pera arsdl / arsdisvea facts ante aa a Enita sais H aa A Hatt wa DAFAFF Wallet HT TEATS

a cealteitattatforo Hr ato aiteretorer fersere wh Vigde ferfres H cote WEA -07 Weer - 144, atest (sat Geer) A Pera arsdl / arsdisvea facts ante aa a Enita sais H aa A Hatt wa DAFAFF Wallet HT TEATS 

6.1. It was brought to the notice of Approval Committee that M/s. Newgen Software Technologies Ltd. had applied for partial deletion of area & revision in projections of the unit located in the IT/ITES SEZ of M/s. Oxygen Business Park Pvt. Ltd. at Plot No.7, Sector-144, Noida (Uttar Pradesh). It was informed to the Committee that presently unit has been operating over an area of 113924 Sqft. at Ground to 3” floor, Tower-E and the unit has requested for deletion of 56625 Sqft. on 2" & 3% floor, Tower-E of SEZ. It was informed that SEZ Developer has given its ‘NOC’ for surrender of proposed 

area. 

6.2. It was also informed that the unit has submitted revised projections, as given below, on account of proposed expansion of unit:- 

|account of proposed expansion of unit:-|||
|---|---|---|
|||Rs. in lakhs)|
|Particulars (for five years)|Existing Projection|Revised Projection|
|Projected FOB value of exports|111000.68|140168.32|
|Foreign Exchange Outgo|15824.25|19854.61|
|NFE Earnings|95176.43|120313.71|
|_Imported Capital Goods|480.00|480.00|
|_Indigenous Capital Goods|400.00|400.00|
|Indigenous Raw materials, consumables &|30.00|30.00|
|components.|||



6.4. After due deliberations, the Approval Committee approved the proposal for partial deletion of area & revision in projections of the unit subject to submission of ‘NOC’ from the Specified Officer. Cy—exh Page 4 of 23

tions, the Approval Committee approved the proposal for partial deletion of area & revision in projections of the unit subject to submission of ‘NOC’ from the Specified Officer. Cy—exh Page 4 of 23 

aber, tee abesr site aoit at Feet Sarath feeb anfiter ata a areqortgarPN AY Reatier 12/06/2020at surance tear aH area | 

7. Ho a1 siediea salar Wigde ferfrres aT ato Alex sacra Yo fore a celle ASAT- 20 Us 21, Aser- 135, arest (Sax Weer) a fRera anset / ansdtsva favre arfite ata A Eala sais H ata A Hat Ud Motaa MaletHT TEATS | 

7.1. It was brought to the notice of Approval Committee that M/s. R1 RCM Global Pvt. Ltd. had applied for partial deletion of area & downward revision in projections of the unit located in the IT/ITES SEZ of M/s. Seaview Developers Pvt. Ltd. at Plot No. 20 & 21, Sector-135, Noida (Uttar Pradesh). It was informed that the present approved area of the unit is 83733 Saft. at 6" floor, Building No.3, 7” floor, Building No.9 & 7" floor, Building No.7 and 45688 Sqft. at 8" floor (22844 Sqft.) & 10" floor (22844 Saft.), Building No.7. The unit has requested for deletion of 22844 Sqft. at 10" floor, Building No.7 of SEZ. The SEZ Developer has given its ‘NOC’ for surrender of proposed area.

10" floor (22844 Saft.), Building No.7. The unit has requested for deletion of 22844 Sqft. at 10" floor, Building No.7 of SEZ. The SEZ Developer has given its ‘NOC’ for surrender of proposed area. 

7.2. It was further informed that the Approval Committee in its meeting held on 06.03.2020 had approved the proposal of the said unit for expansion of area by addition of 45688 Sqft. at 8" floor (22844 Sqft.) & 10" floor (22844 Sqft.), Building No.7 and revision in projections. The approval had been conveyed to the unit vide this office letter dated 19.03.2020. The unit had not executed revised BLUT in respect of approved additional area. The unit had informed that due to the unforeseen circumstances brought in by the ongoing pandemic of COVID-19 globally and subsequent collapse of the global economy, it would be difficult for them to achieve the expected business growth. As as result, they intends to surrender 22844 Sqft. area at 10 floor, Building No.7. 

7.3. It was also informed that the unit has submitted revised downward projections, as given below:- 

Rs. in lakhs) 

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```text
|||||
|---|---|---|---|
|Particulars|(for|five|years)|
|NFE|Earnings|
|Imported|CG|
|“Indigenous|CG|

----- End of picture text -----

----- Start of picture text -----

|||||
|---|---|---|---|
|Particulars|(for|five|years)|
|NFE|Earnings|
|Imported|CG|
|“Indigenous|CG|

----- End of picture text -----

Ti: After due deliberations, the Approval Committee approved the proposal for partial deletion of area & downward revision in projections of the unit subject to submission of ‘NOC’ from Specified Officer. 8. to Rar sdiva wider wigde fates, ar ao arftter atest Umdscaats faies A a saree, Tage ath Atay,cece Tail, Srer-geraerex (SAT Teer) fara set es Us SALTS Siler A Kale SHS H TarsirT H afattad SETH Hi eisrer Hot HT TEA | 8.1. It was brought to the notice of the Approval Committee that M/s. Arshiya 3PL Services Limited had submitted proposal for inclusion of following 02 nos. of items with Exim Codes, in the Annexure-A dyes Page 5 of23

athosr, dex aatear site wort a fear frst faete anfifer atat & sreqonaarabtiter a feerie 12/06/2020at siratfort dow a are ge |

of LOA dated 30.10.2018 of the unit located in the Free Trade and Warehousing Zone of M/s. Arshiya Northern FTWZ Ltd. at Village- lbrahimpur, Junaidpur urf Maujpur, Khurja Distt- Bulandshahr (U.P.):-

LOA dated 30.10.2018 of the unit located in the Free Trade and Warehousing Zone of M/s. Arshiya Northern FTWZ Ltd. at Village- lbrahimpur, Junaidpur urf Maujpur, Khurja Distt- Bulandshahr (U.P.):-

|Si.<br>|EximCode<br>No.<br>proposed|Item description<br>DGFTPolicy|
|---|---|
|by<br>the unit||
|;<br>(i)<br>2309|PREPARATIONS<br>OF<br>A<br>KIND<br>USED<br>IN<br>ANIMAL| Free|
||FEEDING|
|:<br>(ii)<br>2933|HETEROCYCLIC<br>COMPOUNDS<br>WITH<br>NITROGEN| Free|
||HETERO-ATOM(S)<br>ONLY<br>[Excluding<br>ITC(HS)<br>Code|
||29333300,<br>29334100,<br>29335200,<br>29335300,<br>29335500,|
||29335940, 29337200, 29339100 & 29339200].|
|8.2.<br>| Shri Pramod Chhoker, Sr. Manager of M/s. Arshiya 3PL Services Limited joined the meeting||
|through video conferencing and explained the proposal. He informed that one of their client M/s.||
|United Raw Material|PTE., Singapore intends to do trading of aforesaid items. He further informed|
|that they have done|KYC of United Raw Material PTE., Singapore. On being asked about items|
|proposed under Exim Code 2933, the representative of the unit informed that these compounds are||
|being used in Crockery items. The Approval Committee directed the representative of the unit to||
|submitspecificname|ofitemsproposedunderEximCode2933.|

it informed that these compounds are|| |being used in Crockery items. The Approval Committee directed the representative of the unit to|| |submitspecificname|ofitemsproposedunderEximCode2933.|




- 8.3. After due deliberations, the Approval Committee approved the proposal, subject to the condition that the unit shall submit specific name of items proposed under Exim Code 2933 and further subject to the following terms & conditions:(i). No export / import of any items will be allowed, which comes under “Prohibited/Restricted” items/Negative list under Import policy given in ITC(HS) Classification or any other law and/or covered under SCOMET list as per DGFT Notifications / Public Notice / Instructions issued from time-to-time. 

- (ii). The scope of authorized operations of the unit will be strictly as per Rule 18(5) of SEZ Rules, 2006. 

- (iii). Port restrictions as per DGFT Notifications / Public Notice / Instructions issued from timeto-time, shall be applicable. 

- (iv). Any sale in DTA shall be only in convertible foreign currency in terms of proviso to Rule 18(5) of SEZ Rules, 2006. 

- 9, ao staat aifattera ar ato arian aléet Undsecis feats A arr sare, Tetaqr sh Alor, agetter aa, FSron-qeiaerex (SAX Waar) Rare Mr os Us Sas sila A sHIs CATA Het HT TAS

18(5) of SEZ Rules, 2006. 

- 9, ao staat aifattera ar ato arian aléet Undsecis feats A arr sare, Tetaqr sh Alor, agetter aa, FSron-qeiaerex (SAX Waar) Rare Mr os Us Sas sila A sHIs CATA Het HT TAS 

- 9.1. It was brought to the notice of the Approval Committee M/s. Awat Logistics had submitted a proposal for setting up a unit in the Free Trade & Warehousing Zone of M/s. Arshiya Northern FTWZ Ltd. located at Village Ibrahimpur, Junaidpur urf Maujpur, Distt- Bulandshahr (U.P.) to undertake “Warehousing, Trading with or without labeling, packing or re-packing without any processing, yok Page 6 of 23 

abear, tex abvar ite aoit af Reer fara Prebe airfifar abat a sreqotearaller BY feria 12/06/2020a sireiferr dow HY arefger | 

Assembly of Completely Knocked Down or Semi Knocked Down kits for the items as per item list attached with the application, except restricted & prohibited items”. \t was informed that the applicant had enclosed list of 25 Nos. of ITC(HS) Codes and their items description:-

as per item list attached with the application, except restricted & prohibited items”. \t was informed that the applicant had enclosed list of 25 Nos. of ITC(HS) Codes and their items description:- 

```text
||S.No|
|---|---|
||3;<br>Varnish<br>32082090<br>‘Other’<br>/<br>Free,<br>However,<br>actual<br>Code<br>of<br>a a<br>ee|
||6. |Sovents<br>«| <a8i40010=~Free|
||8<br>[PrintedLabels | 48211010 _|Free[item description: Papertags]<br>|<br>Rubber sheets<br>40082110<br>Free|
||[Item description: Used in the manufacture of|
||soles, heels, or soles and heels combined, for|
||15:<br>Vodka<br>22086000<br>‘Other’<br>/Free<br>Pee | RE |Nonveratl CadeVa 2086003<br>16|
||19.<br>Automatic<br>Solder<br>84799090<br>‘Other’/ Free<br>paste<br>printer<br>/a<br>el|
||21.|
||22.|
||23;<br>Black Pepper<br>09041140<br>Prohibited<br>However, import is free if CIF is above Rs.500/<br>per kg. MIP, however, will not be applicable for<br>imports under Advance Authorisation Scheme,<br>imports by 100% Export Oriented Units<br>|) ==|
|9.2.|It was informed that in project report, the proposed service activities mentioned as<br>“Logistic|
|Services,<br>Warehousing,<br>Trading, Labeling,<br>Packing,<br>Re-packing,<br>Reselling & Re-invoicing, Re-||
|exporting ofthe imported goods, Assembly ofCKD/SKD kits, Segregation, Mixing.” |t was informed||
|to the Approval Committee that the unit had projected exports of Rs.262 Lakhs and the cumulative||
|NFE of Rs.94.20 Lakhs over a period of five years.<br>It was also informed that the applicant has not||

he Approval Committee that the unit had projected exports of Rs.262 Lakhs and the cumulative||
|NFE of Rs.94.20 Lakhs over a period of five years.<br>It was also informed that the applicant has not||
|proposedanyrequirementofPlant<br>&Machinery/Capitalgoods/Rawmaterialsfor5years.||

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----- Start of picture text ----- dyerk ----- End of picture text -----

Page 7 of 23

abosr, dex abesr ite wort a Peart Farsi faebe airfifer atat a araaaatalate BY faerie 12/06/2020at airattarr daw at wrege | 9.3. It was also informed that the following discrepancies were observed in the application in the first instance:-

(i) Applicant has proposed export of Rs.262 lakhs during 5 years of operation. Whereas total expenditure has been shown as Rs.412.51 lakhs (Rs.167.80 lakhs + Rs.244.71 lakhs) in P&L Statement. Hence, viability of the project may be called for from the applicant.
(ii) In Affidavit, Mr. Harvinder Singh Panesar has been shown as Director of the company. Further, a List of Directors showing two directors in company has been submitted, whereas application has been submitted by a Proprietorship firm.
(iii) Date of application wrongly mentioned in the Affidavit submitted by the applicant. (iv) Breakup of proposed foreign exchange outgo of Rs.167.80 lakhs required to be submitted.

rship firm.

(iii) Date of application wrongly mentioned in the Affidavit submitted by the applicant. (iv) Breakup of proposed foreign exchange outgo of Rs.167.80 lakhs required to be submitted.

9.4. Shri Harvinder Singh Panesar, Proprietor of M/s. Awat Logistics joined the meeting through video conferencing and explained the proposal. He informed that he is engaged in the field of CHA services, Transportation and cargo handling services since last 07 year’s. He informed that now he intends to setup his own FTWZ unit in Arshiya FTWZ, Kurja. On being asked about Vodka, Whisky, Wine & Gin proposed in the list of items, the representative of the unit informed that the proposed unit will be holding these items on behalf of foreign clients and will be delivered in DTA / exported as per their directions. The Approval Committee directed the representative of the unit to submit quantity of these items and details of foreign client in respect of each of these items. The Approval Committee further observed that the unit has proposed ‘Black Pepper’ [ITC(HS) Code 09041140] which is ‘Prohibited’ for import. The Approval Committee directed the representative of the unit to elaborate the activities to be undertaken and details of client who will be dealing with ‘Black Pepper’.

9.5. After due deliberations, the Approval Committee deferred the proposal with the direction to obtain following information/ clarification from the application in addition to the observations pointed out at Para 9.3 above:-

, the Approval Committee deferred the proposal with the direction to obtain following information/ clarification from the application in addition to the observations pointed out at Para 9.3 above:-

(i). Details of activities to be undertaken and details of client who will be dealing with ‘Black Pepper’.
(ii). Quantity of Vodka, Whisky, Wine & Gin along with details of foreign client in respect of each of these items.
(iii). In project report, the application has proposed service activities as “Logistic Services, Segregation, Mixing’, which are not covered under Rule 18(5) of SEZ Rules, 2006. This need to be clarified.
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10.1. It was brought to the notice of the Approval Committee that M/s. Artha Infratech Pvt. Ltd., Developer of IT/ITES SEZ at Plot No. 21, Sector-Techzone-IV, Greater Noida, had submitted ne
dyed Page 8 of23

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proposal for approval of list of materials to carry on following default authorized operations in the said

==> picture [28 x 9] intentionally omitted <==

----- Start of picture text ----- SEZ ----- End of picture text -----

==> picture [502 x 653] intentionally omitted <==

==> picture [28 x 9] intentionally omitted <==

----- Start of picture text ----- SEZ ----- End of picture text -----

==> picture [502 x 653] intentionally omitted <==

----- Start of picture text ----- 7 Name of Authorized Operations SI.No at default list Estimated of materials as per Cost (i). 2 Construction of all type of buildings in processing Inst. No.50ne and 54 | (Rs.127.02in lakhs) area aS approved by the Unit Approval Committee. (ii). Electrical, Gas and Petroleum Natural Gas 04 20:29 Distribution Network including necessary sub- stations of appropriate capacity, pipeline network — ii).- Accessetc. Control and Monitoring System. 18.38 (iv). Telecom and other communication facilities 05 36.88 including internet connectivity. (v).__| Landscaping and water bodies ee (vi). Solid and liquid waste collection, treatment and 03 eX24.00 disposal plants including pipelines & other necessary infrastructure for sewage and garbage disposal, sewage treatment plants. (vii). Employee welfare facilities like Créche, Medical 20 67.50 center and other such Facilities. Tt | 909.63 10.2. After due deliberations, Approval Committee approved the proposed list of materials. The Approval Committee directed to issue reminder to the developer to expedite submission of Quarterly Report for the period Jan-March, 2020 & Half Yearly Report for the period Oct’2019-March’2020. 11. Application of M/s. Arshiya 3PL Services Private Limited_and M/s.

dite submission of Quarterly Report for the period Jan-March, 2020 & Half Yearly Report for the period Oct’2019-March’2020. 11. Application of M/s. Arshiya 3PL Services Private Limited_and M/s. Arshiya Logistics Services Private Limited, both Units in Arshiya Northern FTWZ Ltd., Free Trade Warehousing Zone _ in Khurja (Uttar Pradesh) seeking In-Principle approval for undertaking specific activities as part of assembly process _of Integrated Air Defence Weapons System in Agreement with foreign companies within Arshiya FTWZ for the purpose of transferring to Indian Air Force through US Government. 11.1. It was informed that two FTWZ units M/s. Arshiya 3PL Services Private Limited and M/s. Arshiya Logistics Services Private Limited, both located in the Arshiya Northern FTWZ Ltd. Free Trade and Warehousing Zone at Khurja (Uttar Pradesh) had submitted a proposal jointly with Raytheon Company, USA & Kongsberg Defence & Aerospace, Norway, seeking In-Principle approval for undertaking specific activities as part of assembly process of Integrated Air Defence Weapons System in Agreement with foreign companies within Arshiya Northern FTWZ Ltd. Free Trade and Warehousing Zone at Khurja (Uttar Pradesh) for the purpose of transferring to Indian Air Force through US Government. The brief background of the proposal are as under:- ----- End of picture text -----

t Khurja (Uttar Pradesh) for the purpose of transferring to Indian Air Force through US Government. The brief background of the proposal are as under:- ----- End of picture text -----

(i) | Raytheon Company, USA (‘Raytheon’) is a major U.S. Defence contractor and industrial corporation with core manufacturingmyerd.concentrations in defence products and electronics.Page 9 of23

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(ii) Kongsberg Defence & Aerospace, Norway ('KDA") is a leading supplier of defence products and systems for command and control, surveillance, space, tactical communications, remote weapon stations and missiles, as well as advanced composites, engineering products and repair and overhaul services for aircraft and helicopters.
(iii) 4n-anticipation—ef U.S. Government (USGYenter g into a contract with Indian Air Force (‘IAF)/Ministry of Defence (MoD) ip “India for supply of Integrated Air Defence Weapons System (IADWS). When the IAF/MOD signs a Letter of Acceptance (LOA) for Foreign Military Sales (EMS) Case, the USG would procure such IADWS from Raytheon, US, for onward supply to IAF. Raytheon anticipates entering into a subcontract with KDA to support this procurement. The IADWS to be supplied by Raytheon and KDA would broadly comprise of the following equipment which shall be assembled together so as to

form the entire IADWS:

| EO/IR Sensor System

urement. The IADWS to be supplied by Raytheon and KDA would broadly comprise of the following equipment which shall be assembled together so as to

form the entire IADWS:

| EO/IR Sensor System
- High Mobility Launcher System (‘HMLS') - Fire Distribution Centre System (FDCS') - Canister Launcher System (CLS) - Sentinel AN/ MPQ-64F1 - | Radar Command Post System Dual Mount Stinger (DMS) - System Rapid Ranger Vehicle Mounted Stinger System (‘RRUMSS) - Communication Relay System
(iv) Further, in order to supply the said IADWS, Raytheon is currently evaluating the opportunity to enter into a contractual arrangement with Arshiya 3PL Services Private Limited (‘A3PL), which currently operates a FTWZ unit at Khurja, Uttar Pradesh, (having LOA No. F. No. 10/42/2018 SEZ/12011 dated 30.11.2018) so as to avail storage and warehousing services in its unit at the said FIW2Z.
(v) Similarly, KDA is evaluating the opportunity to enter into contractual arrangement for similar services with Arshiya Logistics Services Private Limited (ALSL) which is also operating a FTWZ unit at Khurja, Uttar Pradesh (having LOA No. F. No. 10/25/2017SEZ/8437 dated 08.08.2017).
(vi) Subsequently, certain proposed activities which would form part of the overall assembling process of IADWS, would be carried out within the said FTWZ unit by Raytheon/KDA/ Indian vendors (to be identified by Raytheon after MoD signs LOA) or in combination support of each other commencing from the 1 quarter of FY 2021.

ed out within the said FTWZ unit by Raytheon/KDA/ Indian vendors (to be identified by Raytheon after MoD signs LOA) or in combination support of each other commencing from the 1 quarter of FY 2021.

11.2. It was informed that the units have mentioned that the Transaction Mechanics of the proposal will be as under:-

(i) Upon approval, Raytheon desires to enter into a contractual arrangement with Arshiya 3PL Services Private Limited (‘A3PL), which currently operates a FTWZ unit at Khurja, Uttar Pradesh, (having LOA No. F. No. 10/42/2018 SEZ/12011 dated 30.11.2018) so as to avail storage and warehousing services in its unit at the salad FTW2Z. Pyer* Page 10 of 23
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(ii) Subsequently, Raytheon and its vendors (both Indian and foreign) shall export components/parts to the A3PL, FTWZ unit in India. While the components/parts shall be shipped by the vendors/ suppliers directly to the FTWZ unit in India, however, the title thereof shall be transferred to Raytheon. Similarly, KDA and it vendors (both indian and foreign) shall export components/parts to the ALSL, FTW2Z unit in India. While the components/parts shall be shipped by the vendors / suppliers direct to the FTW in India, however, the title thereof shall be transferred to KDA.

ts/parts to the ALSL, FTW2Z unit in India. While the components/parts shall be shipped by the vendors / suppliers direct to the FTW in India, however, the title thereof shall be transferred to KDA.

(iii) Once the component/ parts are shipped to the FTWZ unit, the same would be assembled within the FTWZ unit by the Indian supplier/ KDA / Raytheon or in combination support with from each other, so as to form the equipment, which would form part of the IADWS, to be supplied to IAF. KDA will eventually sell its goods to raytheon within FTWZ (interunit transfer). Further, the activities proposed to be undertaken as part of Assembling process would typically comprise of integration and assembling of components/parts, testing, painting etc. Post completion of the Assembly process, Raytheon shall invoice the IADWS to USG mentioning delivery directly to IAF/Ministry of Defence (MOD) at FTWZ, who shall be the importer into DTA.
(iv) Subsequently, USG would in turn invoice the same mentioning delivery from Raytheon at FTWZ to AF Ministry of Defence (Mod), who will be the ultimate importer into India. Post sale, IADWS shall be cleared by IAF at FTWZ.

11.3. It was further informed that the units have further stated that to enable A3PL, ALSL, Raytheon, KDA and Indian vendors to undertake the proposed activities as detailed above in the FTWZ unit, Arshiya would install certain capital equipment, tools, undertake capital improvements within the FTWZ, as given below:-

Paint booth and any painting equipment for applying camouflage overspray to the LADWS major end items.

capital equipment, tools, undertake capital improvements within the FTWZ, as given below:-

Paint booth and any painting equipment for applying camouflage overspray to the LADWS major end items.
- Fencing inside the facility and security provisions for the IADWS equipment to be stored and locked secure.
- Classified processing and storage areas inside the facility such as secure Safe and secure office space.
- Modifications to the facility to accommodate the IADWS equipment L.e. door expansions, ramp upgrades, lighting improvements, pneumatic drop lines etc.
- High bay overboard cranes with sling and accessories for lifting IADWS equipment. - Outdoor booth area for water wash down to clean IADWS equipment.

11.4. It was informed that the proposal had been examined in consultation with Customs, NSEZ and our observations had been communicated to the unit vide this office letter dated 05.06.2020 with request to provide the point-wise clarification along with the relevant Rule provision and self-certified copies of relevant documents including various agreements, contracts etc. tyea Page 11 of 11 of of 23

Page 11 of 11 of of 23

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11.5. It was informed that W.r.t. this office letter dated 05.06.2020, M/s. Arshiya 3PL Services Pvt. Ltd., co-developer vide its letter dated 10.06.2020 has submitted point-wise reply, which has been reproduced as under:-

==> picture [489 x 683] intentionally omitted <==

iya 3PL Services Pvt. Ltd., co-developer vide its letter dated 10.06.2020 has submitted point-wise reply, which has been reproduced as under:-

==> picture [489 x 683] intentionally omitted <==

----- Start of picture text ----- 4. The proposal mentions that the US | a) Raytheon is a U.S. based company engaged in Government intends to supply defence defence products and electronics. KDA is a equipment to IAF. Further Raytheon and leading supplier of various defence products. KDA intend to avail services of the FTWZ | b) The U.S. Government (USG) will enter into a Units namely A3PL and ALSL. In this contract with Indian Air Force (IAF), Govt. of India regard, self certified copies of the for supply of Integrated Air Defence Weapons agreement/contract entered into between System (IADWS). These IADWS will be produced various parties may be furnished for further by US Government from Raytheon. examination of the proposal in the light of | c) Raytheon will enter into a subcontract agreement SEZ Acts/Rules and other statutes. with KDA to support this procurement. d) All the above arrangements / contracts (including arrangements / contracts with various — other vendors) will materialize only when IAF finally signs the Foreign Military Sales contract (LOA) with the US Govt..

nts / contracts (including arrangements / contracts with various — other vendors) will materialize only when IAF finally signs the Foreign Military Sales contract (LOA) with the US Govt.. Post award of contract by IAF to USG, formal contracts shall be entered between various parties. e) Since there are Government Defence contracts, the confidentially obligations placed on the parties, prohibit them from sharing any part of the contract, either in draft or final stage due to the highly confidential nature of contract. f) However, for the purpose of the reference and understanding of the proposed arrangement, the complete transaction mechanics have already been details in the application filed in this office after their finalisation to the extent allowed by the USG law and security regulations. 2. The proposal mentions that after the |USG shall award a contract to Raytheon, USA, for final product is transferred to the US| procurement of IADWS. Raytheon will subsequently Government by Raytheon, the US| enter into an agreement with SEZ Unit Arshiya 3PL Government shall invoice the same to IAF. | Services Private Limited as foreign supplier as per the This tantamount to sale of the goods into | provisions under Rule18(5) of SEZ Rules, 2006 read DTA. Supply of goods from FTWZ to DTA is —_— Cyerd Page 12 of 12 of of ----- End of picture text -----

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SEZ Rules, 2006 read DTA. Supply of goods from FTWZ to DTA is —_— Cyerd Page 12 of 12 of of ----- End of picture text -----

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----- Start of picture text ----- Page 12 of 12 of of 23 ----- End of picture text -----

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|---|
|subject to payment of duties of Customs as|
|per Section 30 of SEZ Act, 2005.<br>In<br>this |Once the said IADWS is ready for delivery at Arshiya|
|regard, it may clarified :-<br>FTWZ, Raytheon shall invoice<br>it to USG mentioning|
|direct delivery to<br>IAF/Ministry of Defence (MoD)<br>at|
|2(a). Whatmechanism the US Government |FTWZ. In other words, Raytheon shall bill the IADWS|
|intends to adopt to become the owner of|to USG and ship the same to IAF.|
|the final product?<br>Is there any agreement|
|in<br>place<br>with<br>the FTWZ<br>Unit<br>for<br>this |Subsequently, USG would in turn invoice the IADWS to|
|purpose?<br>IAF / MoD mentioning delivery from Raytheon at FTWZ|
|to IAF / MoD.|
|Post sale of IADWS by USG to IAF at FTWZ, the|
||IADWS shall be cleared into DTA by IAF/MoD.|
|2(b).What are the documents/ agreements |The US Govt.

g delivery from Raytheon at FTWZ|
|to IAF / MoD.|
|Post sale of IADWS by USG to IAF at FTWZ, the|
||IADWS shall be cleared into DTA by IAF/MoD.|
|2(b).What are the documents/ agreements |The US Govt. intends to enter into agreement / contract|
|entered into or intended to be entered into |with Raytheon for delivery of IADWS directly to IAF at|
|by the US Government with the FTWZ Unit|Arshiya FTWZ.|
|for the purpose of Warehousing and other|
|services to be provided by the FTWZ Unit |Based on the said agreement / contract, Raytheon|
|w.r.t. the goods?<br>shall<br>turn<br>enter<br>into<br>agreement<br>with<br>A3PL<br>and|
|accordingly,<br>shall<br>deliver<br>the<br>IADWS<br>to<br>IAF<br>on|
|production of an authorisation letterfrom USG.|
|Therefore, they clarified that there shall be no direct|
|agreement between USG and FTWZ Unit.|
|2(c).<br>Since<br>the<br>creation/transfer<br>of |The agreement proposed to be entered into between|
|ownership<br>of goods<br>lying<br>in FTWZ<br>in|<br>USG and Raytheon shall contain a clause for transfer|
|favour<br>of a foreign entity is a legal criterion, | of<br>title<br>of IADWS<br>lying<br>in the A3PL FTW2Z, from|
|what type of contract document has been | Raytheon to USG.|
|created for the purpose?|
|2(d).<br>M/s Arshiya 3 PL will be holding| In this regard, they have highlighted the provisons of|
|goods on<br>behalf of M/s<br>Raytheon.

ent has been | Raytheon to USG.|
|created for the purpose?|
|2(d).<br>M/s Arshiya 3 PL will be holding| In this regard, they have highlighted the provisons of|
|goods on<br>behalf of M/s<br>Raytheon. So| Rule 18(5) of the SEZ Rules, 2006 which provides as|
|Arshiya 3 PL can either export the goods, | under:-|
|or supply<br>it to other Unit, or supply<br>it to|
|DTA as per instructions of the overseas| “the units in<br>a FTWZ or units in FTWZ set up in other|
|entity viz M/s Raytheon. Therefore, the |SEZ shall be allowed to hold goods on account ofthe|
|mechanism of proposed invoicing to US| foreign<br>supplier for dispatch<br>as per the<br>owner's|
|Government and supply to IAF may be| instructions and shall be allowed for trading with or|
|clarified in terms ofthe SEZ Acts/Rules.<br>without labelling,<br>packing or repacking<br>without any|
|furtherprocessing;|
|Provided further that these units may also re-sell or re-|
|tryed<br>Page13of23<br>———|

fthe SEZ Acts/Rules. without labelling, packing or repacking without any| |furtherprocessing;| |Provided further that these units may also re-sell or re-| |tryed Page13of23 ———|




sabes, tee atest site aott a fear feral fede auar abat a asraaiaarathe BY Reatiae 12/06/2020at sratiner doar Hh aretger | invoice or re-export the goods imported by them” In light of above, the IADWS held by A3PL FTWZ on account of foreign supplier i.e. Raytheon shall be invoiced to USG with delivery directly to IAF at FTW2Z. Therefore, while the IADWS shall be invoiced to USG, the same shall be delivered to IAF as per the instructions of the owner viz. Raytheon in terms of Rule 18(5) of the SEZ Rules. USG would in turn invoice the same to IAF mentioning that IADWS shall be delivered to the IAF by Raytheon at the FTW2Z. IAF shall clear the same to DTA from FTWZ base on invoice, authorisation / delivery order from USG, by filling Bill of Entry for Home Consumption. 2(e). Whether any Custom duty exemption | In this regard, they have highlight that vide Notification in respect of sale of final product into DTA | No. 19/2019-Customs, dated 6” July, 2019, the (to IAF) is intended to be availed? If yes, | Ministry of Finance (MoF) has exempted the IADWS please mention the details of the | from whole of the duty of Customs leviable thereon exemption notification/authorization issued | under the First Schedule of the Customs Tariff Act by the MoF/DGFT/competent authority.

tails of the | from whole of the duty of Customs leviable thereon exemption notification/authorization issued | under the First Schedule of the Customs Tariff Act by the MoF/DGFT/competent authority. 1975 and the whole of Integrated Tax leviable thereon under Section 3(7) of the said act, when imported into India by the MoD, Government of India or the defence force. Benefit of the above exemption is intended to be availed in respect of final clearance of goods by IAF into DTA. 3. It may be seen that as per Rule 18(5) r/w | In this regard, they have highlight the provisons of Instruction no. 60 issued by DoC(MoC), the | Section 26(1)(a) of the SEZ Act, 2005, which provides Units namely M/s A3PL and M/s ALSL may | exemption from customs duties on goods imported into hold goods on behalf of the Foreign |an FTW2Z unit for carrying out of authorised operations. entity(Raytheon or KDA) for dispatches as per | The relevant extract of the said provision has been owners (Raytheon/KDA) instructions. The | reproduced below: said provisions allow benefit of Custom duty | “exemption from any duty of customs, under the (import duty) in respect of the goods which are | Customs Act 1962, or the Custom Tariff Act 1975, or permitted to be imported for the authorized | any other law for the time being in force, on goods operations. However, as per proposal, it | imported into, or service provided in, a Special appears that testing equipments, other capital |Economic Zone, to carry on the authorised operations igen ae tye? Page 14 of23

as per proposal, it | imported into, or service provided in, a Special appears that testing equipments, other capital |Economic Zone, to carry on the authorised operations igen ae tye? Page 14 of23 

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|---|---|---|---|
|goods, paint etc. to be imported/procured by||||| by the Developeror entrepreneur’|
|Raytheon/KDA_ do not fall under the ambit of||||
|the authorised activity of the FTWZ Unit, and||||| Further, as per Section 2(za) fo the SEZ Act, 2005, the|
|accordingly, prima facie benefit of||duty/taxes|| definition of ‘Special Economic Zone’ includes ‘Free|
|does not|appear to be, prima facie, available|||Trade and Warehousing Zone’ in its ambit.|
|on such|goods.<br>It may, therefore,|be clarified||
|whether|it is intended to avail the Customs|||Also, Section 16 of the IGST Act 2017 provides that|
|duty/IGST benefits and if yes, then||as to how||| supply of goods or services to<br>a SEZ developer or unit|
|the said|benefits are intended to|be availed|| shall qualify as ‘zero-rated supply’ on which<br>no GST|
|under the SEZ/GST statute.|||shall<br>be<br>payable.

services to<br>a SEZ developer or unit|
|the said|benefits are intended to|be availed|| shall qualify as ‘zero-rated supply’ on which<br>no GST|
|under the SEZ/GST statute.|||shall<br>be<br>payable. The<br>said<br>provisions<br>provides as|
||||under;|
||||“(1).<br>‘zero-rated supply’ means any of the following|
||||supplies ofgoods orservices orboth namely;|
||||(a) Export ofgoods orservices orboth; or|
||||(b)<br>Supply of goods or services or both to a Special|
||||Economic Zone Developerora Special Economic Zone|
||||unit”|
||||In light of above,<br>it may be construed that no taxes|
||||shall be allowed levied on inputs, capital goods that|
||||shall be procured from the DTA for the purpose of|
||||authorised operations to be carried out in the FTWZ|
||||unit.|
||||Furthermore, they would like to draw attention to S.No.|
||||(vi) of the Instruction No. 49 dated 12" March, 2010|
||||issued by MoC wherein it has been mentioned that “the|
||||Approval Committee may consider the requests for|
||||allowing cutting, polishing, blending etc. as part of the|
||||authorised operation of an FTWZ on a case to case|
||||basis based on the merits ofthe case”.|
||||Basis the above guidelines and usage of the word ‘etc’|
||||therein, it may be inferred that the intension ofthe MoC|
||||is to allow such other activities which may be essential|
||||for carrying<br>out the<br>overall<br>integral process<br>of the|
||||permited activities.|
||||Accordingly, both the FTWZ units viz. ASPL and ALSL|
|||lye<br>Page15of23<br><_—||

ssential| ||||for carrying out the overall integral process of the| ||||permited activities.| ||||Accordingly, both the FTWZ units viz. ASPL and ALSL| |||lye Page15of23 <_—||




tenn, tee attear aie aatt at Feuer frat faebe anfitar aba a areawlarter BY feet 12/06/2020at ureatfarr doar HY aretger | shall submit proposal to the UAC for inclusion of painting, testing etc to be included in their LOA as part of the authorised operations. 

4. The proposal mentions that part of the final | In this regard, they have mentioned that ‘assemble’ defence equipment shall be assembled at M/s | means ‘to construct something by fitting parts together’. A3PL and other part at M/s ALSL. As per SEZ statute [ proviso to Rule 18(5) refers], | In the instant case, the parts and components albeit assembly of CKD or SKD kits is allowed. The | imported/procured from various sources will be de facto proposal mentions that the one part! constitute a kit. This will thereafter be assembled into assembled in one Unit shall be transferred to | an IADWS. the other Unit for the purpose of final assembly resulting in the product ‘Defence |The IADWS will be assembled in the FTW2Z in Equipment’. The FTWZ is normally meant for | accordance with the definition of ‘assembly’ i.e “to undertaking Trading & Warehousing activities | construct something by fitting parts together’. No i.e. manufacturing activities are not permitted | manufacturing activity will take place. in FTWZ.

to undertaking Trading & Warehousing activities | construct something by fitting parts together’. No i.e. manufacturing activities are not permitted | manufacturing activity will take place. in FTWZ. However, the assembly of SKD/CKD kits is allowed for the reason that at the time of import/procurement when the consignment is received in CKD/SKD condition, its Customs classification is done as per the HSN code of the finished goods and therefore, no new goods are said to have come into existence after assembly for the purpose of Customs classification. The imports are generally classified as ’Goods in CKD Form’ e.g. ‘LED TV 60 inch in CKD form’. At the time of removal, the assembled product would be described and classified as "LED TV 60 inch” without any change in Customs HSN Code. On the other hand, from your proposal, it is observed that:4(a). all items will not be imported as one consignment and_ therefore, these separately imported/procured items shall not merit Custom classification under a single HSN code which otherwise should be the same as the Custom classification of the final assembled _ product. Accordingly, these separate consignments of parts/components may not. be considered as CKD/SKD kits. It may, (} eth Page 16 of23 16 of23 of23 

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KD kits. It may, (} eth Page 16 of23 16 of23 of23 

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```text
||||||||abesr, textex attest site oil a Rexrer faratt rede anfiter ata<br>a weAlaaweerweAlaaweer<br>weer BY free 12/06/2020at srattert12/06/2020at srattert<br>at srattertsrattert dow aa are gege ||
|---|---|---|---|---|---|---|---|
|therefore,<br>be|clarified|as|to|how|it|is||
|intended to fulfill the criteria|||of ‘assembly|||of||
|CKD/SKD kits’|laid down under Rule 18(5);|||||||
|A(b). it is not clear as to||how|the processes|||||In this regard, they have reiterate that the contract for|
|being undertaken in the||two|different Units|||||supply of IADWS<br>shall be entered solely between|
|constitute the process 'assembly';|||||||Raytheon and USG. KDA shall not be a party to the|
||||||||said contract.|
||||||||Further, for the purpose ofsupplying the said IADWS to|
||||||||USG,<br>Raytheon<br>shall<br>procure<br>various<br>parts<br>/|
||||||||components and services from KDA (which is merely|
||||||||one ofthe vendors/suppliers forRaytheon).|
||||||||Furthermore,<br>KDA<br>in<br>order<br>to<br>fulfil<br>its<br>contractual|
||||||||obligations towards Raytheon may separately procure|
||||||||components<br>/<br>parts<br>/ services<br>from<br>other vendors|
||||||||including<br>ALSL.<br>As<br>part<br>of<br>proposed<br>transaction|
||||||||mechanics, KDA intends to carry out certain assembly|
||||||||operations<br>under<br>ALSL<br>to<br>fulfil<br>its<br>contractual|

uding<br>ALSL.<br>As<br>part<br>of<br>proposed<br>transaction|
||||||||mechanics, KDA intends to carry out certain assembly|
||||||||operations<br>under<br>ALSL<br>to<br>fulfil<br>its<br>contractual|
||||||||obligations towards<br>Raytheon.<br>Post assembly, KDA|
||||||||shall make an inter-unit transfer of goods to Raytheon|
||||||||underA3PL to fulfil its contractual obligation.|
||||||||Subsequently,<br>Raytheon<br>under A3PL<br>will<br>carry out|
||||||||further<br>assembling<br>/<br>integration<br>of<br>components|
||||||||procured by it directly along with components procured|
||||||||by inter unit transfer from KDA as mentioned above|
||||||||and will then carryout all the testing and finishing and|
||||||||then sell the resultant product viz. IADWS to USG.|
||||||||Therefore, the process of assembly carried out in both|
|:<br>i<br>,<br>;<br>:<br>|<br>Page17of23||||||||

abear, de abesr site aoit a Reece fat feeder after abst & seataarwteter HY feria 12/06/2020at xraifora dow at wretger | the units (A3PL and ALSL) is’ separate and independent, for their respective foreign suppliers (i.e. Raytheon and KDA) so as to fulfil their respective contractual obligations. 5. The proposal mentions that it is intended | In this regard, they highlighted that currently no such to seek approval from UAC for the processes | formal agreement has been entered into between the like Painting, Testing etc. to be undertaken | foreign entity i.e. Raytheon and A3PL FTWZ unit. within FTWZ in terms of Instruction no.

processes | formal agreement has been entered into between the like Painting, Testing etc. to be undertaken | foreign entity i.e. Raytheon and A3PL FTWZ unit. within FTWZ in terms of Instruction no. 49 for the purpose of authorized operation of | However, the complete description of processes like assembly of CKD/SKD kits. In this regard, it | painting, testing etc which are proposed to be carried may be mentioned that a complete specific | out in the FTWZ unit as a part of the overall assembly[/] proposal to include such activities under the | integration process have already been detailed in the Units' ‘authorized operations’ shall be required | application submitted with your good office. to be made by the respective Unit within the ambit of Instruction no. 49. Such inclusion of | Presently they are seeking approval of this office, to the activity may be considered by the UAC| proposed arrangement to carry out overall assembling / subject to all relevant documents being | integration process within Arshiya FTWZ. furnished which may include the agreement between the foreign entity and the Unit | Since this is a unique arrangement, we seek your wherein the said activities are specifically | approval to the proposed arrangement, Once an Inmentioned as part of the assembly process| principle approval is in place, USG shall enter into an along with complete description of the process | agreement with the Government of India and the other to be undertaken and the process flow | foreign entities shall enter into agreement with the diagram. FTWZ Units.

e description of the process | agreement with the Government of India and the other to be undertaken and the process flow | foreign entities shall enter into agreement with the diagram. FTWZ Units.

Further, they highlighted that both the units shall make application seeking approval of the UAC for inclusion of all the processes such as painting, testing etc, as detailed in the application as part of the authorised operations in light of point no. (vi) of Instruction No. 49 dated 12" March 2010 issued by the MoC. 6. The proposal mentions that after final | As highlighted in query ref no. 2 (d) above, the assembly of the 'Defence Equipment’ in one | provisions of Rule 18(5) of the SEZ Rules 2006 Unit, Raytheon shall invoice the goods to US| provides that an FTWZ unit can hold goods for foreign Government. However, it is observed that | entities for further dispatch as_ per the owner’s Rule 18(5) only permits ‘dispatches' of goods| instructions. The relevant extract of the said provision as per owner's instructions. As per existing | has been reproduced below for your ready reference. provisions, goods can be removed/transferred from FTWZ in three ways only i.e. Export, | “The units in FTWZ or units in FTWZ set up in other Sale into DTA and Inter Unit Transfer. | SEZ shall be allowed to hold the goods on account of Therefore, it may be clarified as to what | the foreign supplier for dispatches as per the owner's a tac Page 18 of 18 of of

Page 18 of 18 of of 23

hall be allowed to hold the goods on account of Therefore, it may be clarified as to what | the foreign supplier for dispatches as per the owner's a tac Page 18 of 18 of of

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abesr, dex atest site aait a Rexer faratt faebe ainfttar abst & sreealates BY faerie 12/06/2020at sraifarr dow Ht aretger | mechanisms you intend to adopt for affecting | instructions and shall be allowed for trading with or such transfer. There is no provision in the SEZ | without labelling, packing or repacking without any Rules to hold the goods within the FTW2Z| further processing: while affecting sale to foreign entity (in your | ................ case it is US Government). In this case it appears that by one of the two Units in FTWZ | Provided further that these units may also re-sell or goods are to be imported in CKD/SKD | re-invoice or re-export the goods imported by condition and will be required to effect inter | them” Unit transfer for assembly. Further, as per Section 2(z) of the SEZ Act 2005 payment for inter-Unit transfer has to be received in foreign | In light of above, the IADWS held by A3PL FTWZ on currency. account of foreign supplier i.e. Raytheon shall be invoiced to USG with delivery directly to IAF at FTW2Z. Therefore, while the IADWS shall be invoiced to USG, the same shall be delivered to IAF as per the instructions of the owner viz. Raytheon in terms of Rule 18(5) of the SEZ Rules. USG would in turn invoice the same to IAF mentioning that IADWS shall be delivered to the IAF by Raytheon at the FTWZ.

instructions of the owner viz. Raytheon in terms of Rule 18(5) of the SEZ Rules. USG would in turn invoice the same to IAF mentioning that IADWS shall be delivered to the IAF by Raytheon at the FTWZ. Further, as regards your query regarding payments for inter-unit transfers being received in foreign currency, we confirm that the Inter unit transfers from KDA to Raytheon and vice versa, if any shall be in foreign currency. 7. The proposal mentions that Raytheon | Yes, it is intended that benefit of Customs duties/ IGST would bring in capital goods for the purpose of | would be availed on aforesaid imports/ procurements. assembly process in FTWZ. Raytheon and KDA also intend to import/procure various | In this regard, they have mentioend that benefit of other items viz. paint, trucks, testing | exemption can be availed on the basis of the provisions equipment etc. for the purpose, and | of the SEZ Act 2005 and Integrated Goods and Service theretofore, the ownership of such goods | Tax (IGST) Act 2017. would remain with Raytheon/KDA. In such case, it prima facie appears that the benefit of |The said provisions have been discussed in response Customs duty (on import) may not be | to Query Ref No. 7(b) below. available for the reason that such exemption is available for trading goods u/r 18(5) which is not the case here. Further, as per Rule 27 of SEZ Rules, the benefit of exemption for import (duties of customs) /procurement of = 7? L A Page 19 of[23] ee

able for trading goods u/r 18(5) which is not the case here. Further, as per Rule 27 of SEZ Rules, the benefit of exemption for import (duties of customs) /procurement of = 7? L A Page 19 of[23] ee

abesr, tex atest site watt at fezrer fara feebe snftlar abat a seqalaeralate BY faerie 12/06/2020aw sraiforr dow HF aretqe |

goods (IGST) for the purpose of authorized operations (assembly/ painting/ testing as may be permitted by the UAC) is only available to the Unit _which is also not the case here. In this regard, it may be clarified: - 7(a). whether it is intended to avail the benefit of exemption from Custom duties/ IGST on aforesaid imports/ procurements? 7(b). If yes, how and under what provisions |They have highlighted the provisions of Section of SEZ law/GST law is such exemption | 26(1)(a) of the SEZ Act 2005 as mentioned in our intended to be availed? response to Query Ref No. 3 above, which provides exemption from Custom duties on goods imported into an FTW2Z unit for carrying out of authorised operations.

mentioned in our intended to be availed? response to Query Ref No. 3 above, which provides exemption from Custom duties on goods imported into an FTW2Z unit for carrying out of authorised operations. The relevant extract of the said provision has been reproduced below for your ready reference: “Section 26 (1) Subject to provisions of sub-section (2), every developer and the entrepreneur shall be entitled to the following exemptions, drawbacks and concessions, namely: - (a) exemption from any duty of customs, under the Customs Act 1962, or the Custom Tariff Act 1975, or any other law for the time being in force, on goods imported into, or service provided in, a Special Economic Zone, to carry on the authorised operations by the Developer or entrepreneur’ Further, as per Section 2(za) of the SEZ Act 2005, the definition of “Special Economic Zone” includes “Free Trade and Warehousing Zone” in its ambit. In light of the above provision, it may be construed that no Customs duty shall be levied on inputs, capital goods that shall be imported into the FTW2Z unit for the purposes of authorised operations, irrespective of the ownership of such goods being in the name of the foreign entity i.e. Raytheon in the instant case. Additionally, as per Rule 27(1) of the SEZ Rules 2006, a unit or developer may procure goods from DTA

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oper may procure goods from DTA

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a& weenaarwetterabesr, dexBY faerieatest 12/06/2020site aott a atFeuerwrattertfarsi doafeebe arsufferwre aba GT | without payment of any taxes which are required for authorised operations. The relevant extract of the said provision is as follows: “A unit or developer may import or procure from DTA without payment of duty, taxes or cess or procure from DTA after availing export entitlements or procure from other units in the same SEZ or other SEZ or from EOU or STP or EHTP, all types of goods, including capital good required for authorised operations “ Therefore, in light of the above provision, all the procurements by the FTWZ from DTA shall be exempt. Also, Section 16 of the IGST Act 2017 provides that supply of goods or services to a SEZ developer or unit shall qualify as ‘zero-rated supply’ on which no GST shall be payable. The said provisions provide as under: “(1) ‘zero-rated supply’ means any of the following supplies of goods or services or both namely (a) Export of goods or services or both; or (b) Supply of goods or services or both to a Special Economic Zone Developer or a_ Special Economic Zone unit” In light of the above, it may be construed that no taxes shall be levied on inputs, capital goods that shall be procured from the DTA for the purpose of authorised operations to be carried out in the FTWZ unit.

the above, it may be construed that no taxes shall be levied on inputs, capital goods that shall be procured from the DTA for the purpose of authorised operations to be carried out in the FTWZ unit. In other words, no taxes shall be payable on goods that are physically supplied to a FTWZ (and billed directly to the overseas entity) for the purposes of carrying out authorised operations. Therefore, no GST shall be payable on goods that are invoiced to the foreign supplier i.e. Raytheon, and shipped to the FTWZ from the DTA, for the purposes of carrying out authorised operations.

Furthermore, they referred the S.no. (vi) of the Instruction No. 49 dated 12" March 2010 issued by MoC wherein it has been mentioned that the Approval Committee may consider the requests for allowing cutting, polishing, blending etc. as part of the authorised operations of an FTWZ on a case to case y, 66 bycrt Page 21 of 21 of of

Page 21 of 21 of of[23]

ates, ex atest aike watt at Fear Farol fede anftlar atat & sreealartet HY feet 12/06/2020at sreiferr dow at aretger | basis based on the merits of the case. Accordingly, both the FTWZ units viz. A3PL and ALSL shall submit proposal to the UAC for inclusion of painting, testing etc to be included in their LOA as part of the authorised operations. 8. Ideally Raytheon may set up a Unit in | In this regard, it is submitted that it is not proposed for FTWZ and import all components/parts in | Raytheon to become a unit as being a foreign entity, it CKD/SKD, assemble it and then it can supply | is not permissible under the SEZ Act and Rules.

sed for FTWZ and import all components/parts in | Raytheon to become a unit as being a foreign entity, it CKD/SKD, assemble it and then it can supply | is not permissible under the SEZ Act and Rules. The it to IAF. Therefore, it may be clarified as to |SEZ Rules clearly provide foreign suppliers to be doing how two Units, holding different goods, will | approved activities under the unit whereby the assemble these goods. ownership will remain with the foreign suppliers. Here, they reiterated that the contract for supply of IADWS shall be entered solely between Raytheon and USG. KDA shall not be a party to the said contract. Further, for the purpose of supplying the said IADWS to USG, Raytheon shall procure various parts / components and services from KDA (which is merely one of the vendors / suppliers for Raytheon). Further, KDA in order to fulfil its contractual obligations towards Raytheon may separately procure components / parts / services from other vendors including ALSL. As part of proposed transaction mechanics, KDA intends to carry out certain assembly operations under ALSL to fulfil its contractual obligations towards Raytheon. Post assembly, KDA shall make an inter-unit transfer of goods to Raytheon under A3PL to fulfil its contractual obligation. Subsequently, Raytheon under A3PL will carry out certain activities of assembly and will then carryout all the testing and finishing and then sell the resultant product viz. IADWS to USG.

obligation. Subsequently, Raytheon under A3PL will carry out certain activities of assembly and will then carryout all the testing and finishing and then sell the resultant product viz. IADWS to USG. Therefore, the process of assembly carried out in both the units (A3PL and ALSL) is separate and independent ,for their respective foreign suppliers (i.e. Raytheon and KDA) so as to fulfil their respective contractual obligations . 11.6. Shri Vinod Parekh, Vice President, Shri Pramod Raghawan, Asstt. Vice President & Shri Pramod Chhoker, Sr. Manager of M/s. Arshiya joined the meeting through video conferencing and explained the proposal. Besides, Shri Sanjeev Venkatesan, Director of M/s. Raytheon, Shri i Lach Page 22 of23

ates, dex atbear site aot a fare fara faebe anfifar stat a srepaiger alter Hr fear 12/06/2020 at sraitare toa Hr art ge | Agneshwar Sen, Director of E&Y and Ms. Divya Bhushan, Advisor of E&Y also joined the meeting through video conferencing and explained the proposal on behalf of M/s. Raytheon. On being asked about the time frame to get the contract signed between Raytheon and US Government, the representative of the unit informed that they anticipate finalization of an agreement between USG and IAF[/] Ministry of Defence by September, 2020 and subsequent to that other Agreement / Contracts of M/s. _ Raytheon, M/s. KDA with A3PL and ALSL will be formalized.

of an agreement between USG and IAF[/] Ministry of Defence by September, 2020 and subsequent to that other Agreement / Contracts of M/s. _ Raytheon, M/s. KDA with A3PL and ALSL will be formalized.

11.7. The Committee observed that the proposal is of such importance that it should be encouraged. However, for setting up of unit and other clearances, an application has to be made in Form-F under Rule 17 of the SEZ Rules so that the same is approved or approved with modification or rejected by the Unit Approval Committee under Rule 18 of the SEZ Rules. There is provision vide Rule 6(1)(b) of the SEZ Rules for in-principle approval of a Developer, however, there is no provision in the SEZ Act/Rules regarding in-principle approval to a unit / activity. Both the units may collect all the information / documents and submit their applications for formal approval for the proposed activities after finalization of contracts. The value of equipment / goods in the proposed activities are also required to be mentioned while submitting the formal application. During the meeting of the Unit Approval Committee the Specified Officer, NSEZ pointed out that when the IADWS sold in Domestic Tariff Area from FTWZ, Customs duty will be exempted in terms of Notification No. 19/2019-Customs dated 6" July 2019, however, IGST will be applicable. The representative of the E&Y informed that there is notification / provision for exemption of IGST also, which will be made available to Customs, NSEZ.

" July 2019, however, IGST will be applicable. The representative of the E&Y informed that there is notification / provision for exemption of IGST also, which will be made available to Customs, NSEZ. The Specified Officer further pointed out that the proposed assembly of parts in the two units of the Arshiya FTWZ do not covered under “assembly of CKD/SKD Kits”, which is permissible activity in FTWZ under Rule 18(5) of the SEZ Rules, 2006. The representative of E&Y argued that under the broad definition of “assemble” the assembly of CKD/SKD Kits is covered. In the instant case, the parts and components imported / procured from various sources will de facto constitute a kit. This will thereafter be assembled into an IADWS. They further informed that they will further search and submit necessary documents / papers in this regard for examination by Customs, NSEZ. However, keeping in view the importance of the proposal, Committee directed that complete facts of the matter including the reply received from the unit on observation of NSEZ vide letter dated 10.06.2020 be forwarded to Department of Commerce for information.

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