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(Minutes of Meeting of Approval Committee of Naida SEZ held on 20/03/2014

The meeting of the Approval Committee of Noida SEZ was held on 20103/2014

at 12 Noon in the Conference Hall of NSEZ, Noida. The meeting was chaired by

Dr. L.B. Singhal, Development Commissioner, Noida SEZ. Following members were

present:

1 Shri Manish Goyal, Addl. Commissioner, Customs

2 Sh. Manu Tentiwal, Joint Development Commissioner, NSEZ

3 Shri S.S. Kumar, Under Secretary, Deptt. Of Commerce

4 Shri Gagandeep Singh, Asstt. DGFT

5 Shri Sudheer Kumar, Associate Architect, Noida Authority

Besides, Shri Rakesh Kumar, Dy. Development Commissioner, NSEZ, Shri Sharad

Srivastava, Dy. Commissioner of Customs, NSEZ, Shri R.P. Verma, Asstt.

Development Commissioner, NSEZ, Shri Bhuvan Yadav, AEE, U.P.P.C.B. Noida and

Shri Anil Kumar Sharma, SDO, UPPCL also attended the meeting.

GIST OF THE MEETING:

Ratification of Minutes of last meeting of the Approval Committee:

The Approval Committee ratified the minutes of the last meeting held on 20101/2014.

Decisions on Proposals:

1. Proposal in respect of MIs Atco Flexduct Pvt. Ltd. for change of entrepreneur (by way

of transfer of building) in favour of MIs Ebix Software India Pvt. Ltd. (Unit-ll).

The Committee, after due deliberations, approved the proposal for transfer of assets and

liability of Mis Atco Flexduct Pvt. Ltd. to Mis Ebix Software India Pvt. Ltd., a valid LOA

holder, subject to condition that transferor unit will complete exit formalities first and

applicable transfer charges shall be paid. The Committee also reviewed the performance of

MIs Atco Flexduct Pvt. Ltd. and noted the achievement of positive NFE by the unit as on

31/03/2013.

2. Proposal for amendment in authorized operations, approval for procurement of

indigenous goods. of MIs Lakeland Gloves & Safety Apparel Pvt. Ltd and review of

performance.

The Committee noted that the unit has been NFE negative by Rs. 30.41 lakhs during the

L~ve years block (23/10/2008 to 22/10/2013). Therefore, the Committee directed the

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(Minutes of Meeting of Approval Committee of Noida SEZ held on 20/03/2014

Specified Officer, NSEZ to work out the quantum of applicable duty availed on the inputs

commensurate with the value of negative NFE earnings (based on exported goods) as

shown by the unit during the period of first five years, and inform the unit (along with details

of accrued interest) to pay the same to Customs within 15 days from the date of issue of

these minutes. The Committee, therefore, deferred the proposal of the unit and

adjudication of the SCN and decided to take up the same only on payment of duty and

interest by the unit as worked out by the Customs.

3. Proposal in respect of MIs Shree Namo Alloys - Amendment in LOA

The Committee noted that the unit has been NFE negative by Rs. 12.43 lakhs during the

first five years block (02/01/2005 to 01/01/2010). Therefore, the Committee directed the Oy.

Commissioner of Customs, NSEZ to work out the quantum of applicable duty availed on the

inputs commensurate with the value of negative NFE earnings (based on exported goods)

as shown by the unit during the period of first five years, and inform the unit (along with

details of accrued interest) to pay the same to Customs within 15 days from the date of

issue of these minutes. The Committee, therefore, deferred the proposal of the unit and

adjudication of the SCN and decided to take up the same only on payment of duty and

interest by the unit as worked out by the Customs.

4. Proposal of MIs Indeutsch Industries Pvt. Ltd. (II) for inclusion of Trading items in

LOA

The Committee considered the proposal and approved inclusion of trading items as

requested by the unit. However, amended LOA shall be issued only on receipt of

projections of export, forex outgo and NFE Earnings from the unit.

5. Proposal of MIs Trade Perfections for inclusion of additional trading activities in LOA

& Review of performance.

The Committee discussed the proposal of the unit and decided to defer the case with the

directions to the unit to rethink on the viability of physical export of the proposed items and

submit its confirmation for further discussion on the matter. The Committee further reviewed

the performance of the unit and noted the achievement of positive NFE by the unit as on

31/03/2013.

6. Proposal of MIs Tripier Group India Pty. Ltd. for inclusion of additional

l~Ufacturing items in LOA, and Reviewof performance.

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{Minutes of Meeting of Approval Committee of Noida SEZ held on 20/03/2014

The Committee discussed the agenda note and approved the proposal of the unit for

inclusion of manufacturing of additional items in LOA. The Committee also reviewed the

performance of the unit and noted the achievement of positive NFE by the unit as on

31/03/2013.

7. Proposal for amendment in LOA of MIs Indo Dan Lampshades Pvt. Ltd. and review of

performance.

The Committee considered and approved the proposal of the unit for amendment in

authorised activities relating to manufacturing as per agenda note. The Committee also

reviewed the trading activities allowed to the unit and decided to allow the same subject to

condition that 100% physical export shall be undertaken and no DTA sale will be allowed.

The Committee further reviewed the performance of the unit and noted the achievement of

positive NFE by the unit as on 31/03/2013.

8. Proposal of MIs MEC Global for Amendment in LOA and review of performance

The Committee considered and approved the proposal of the unit for inclusion of services in

LOA as requested by the unit, subject to the condition that 100% physical export shall be

undertaken and no DTA sale will be allowed.

The Committee further reviewed the performance of the unit and noted the achievement of

positive NFE by the unit as on 31/03/2013.

9. Proposal of MIs Electro Optic Systems Division (Unit-II) [A division of MIs Optic

Electronic India Pvt. Ltd.] - Change of name of unit, Amendment in LOA and review

of performance

The Committee deferred the proposal with the directions to re-examine the same W.r.t.

items approved by the UAC and whether change in name of Division has been informed to

ROC or not.

10. Proposal for decision on Transfer of building at Plot No. 144 in favour of MIs GCS

Impex (NSEZ)

The Committee noted that since the matter is sub judice before the Hon'ble Delhi High

Court, therefore, the Committee decided to defer the case till the announcement of verdict

by the Hon'ble High Court.

11. Proposal of MIs Tata Consultancy Services Ltd. for Change of Entrepreneur (transferlu;seml

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(Minutes of Meeting of Approval Committee of Naida SEZ held on 20/03/2014

The Committee deliberated on the proposal and decided not to approve the same as the

validity of Letter of Approval and the lease of the land allotted to the unit has already

expired 'and thus the proposal does not fulfil the conditions as laid down in third proviso to

Rule 19(2) read with rule 74A of SEZ Rules, 2006. Hence rejected.

12. Proposal of MIs Aksasia Creations Pvt. Ltd. for LOA Renewal, Adjudication of SCN

and review of performance

The Committee took note of the submissions made by the unit against the show cause

notice dated 18/12/2013 and considered the proposal of the unit for LOA renewal. After

detailed discussions the Committee decided to renew the LOA dated 21/02/2005 for five

years i.e. up to 30/07/2018 subject to condition that no request from the unit for transfer of

assets/building under the provisions of the SEZ Rules, 2006 shall be entertained during this

extended period of five years. However, in case unit wants to exit from SEZ scheme during

the said period of five year, it will have to surrender the allotted plot along with building

thereon to the NSEZ Authority for further necessary action under the prevailing provisions.

13. Proposal of MIs Aksasia Creations Pvt. Ltd. for review of lapselcancellation of LOA

dated 03/07/2012

The Committee deliberated on the proposal at length and decided to reinstate & extend the

LOA dated 03/07/2012 for one year i.e. up to 02/07/2014 subject to consideration of sharing

permission to the unit as per prevailing provisions of the NSEZ Authority.

14. Proposal of MIs Jayshree Gems & Jewellery for cancellation of 'in principle' approval

for exit, Renewal of LOA and review of performance.

The Committee decided to defer the proposal for its next meeting as no one from the unit

turned up for the meeting.

15. Proposal in respect of MIs Interactivity Broadband Telecommunication Pvt. Ltd. for

. review of performance, Hearing for SCN adjudication, Renewal and Amendment of

LOA.

The Committee, after detailed discussion, deferred the proposal with the directions to the

unit to clarify and explain in detail as to how the activities being undertaken by it arel~under rule 76 of the SEZ Rules, 2006.

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{Minutes of Meeting of Approval Committee of Noida SEZ held on 20/03/2014

16. Proposal in respect of MIs SU Import Services Pvt. Ltd. for Amendment in LOA &

Review of performance

The Committee deliberated on the proposal of the unit and approved the same as

requested by the unit.

The Committee also reviewed the performance of the unit and noted the achievement of

positive NFE by the unit during previous block of five years and as on 31/03/2013.

17. Proposal in respect of MIs Sunglass Palace Pvt. Ltd. for Amendment in LOA

The Committee approved inclusion of additional trading items as requested by the unit,

subject to condition that 100% physical export shall be undertaken and no DTA sale will be

allowed.

18. Proposal in respect of MIs 8.5. 8ikram Overseas for Renewal of LOA, Adjudication of

SCN & Review of sharing etc.

The Committee took note of the submissions made by the unit against the show cause

notice dated 24/12/2013 and considered the proposal of the unit for LOA renewal. After

detailed discussions the Committee decided to renew the LOA dated 09/07/2001 for five

years i.e. up to 26/01/2019 subject to condition that no request from the unit for transfer of

assetslbuilding under the provisions of the SEZ Rules, 2006 shall be entertained during this

extended period of five years. However, in case the unit wants to exit from SEZ scheme

during the said period of five year, it will have to surrender the allotted plot along with

building thereon to the NSEZ Authority for further necessary action under the prevailing

provisions.

19. Proposal in respect of MIs Radha Jewellery Pvt. Ltd. for change of directors and

review of performance

Since nobody from the unit attended the meeting, the Committee deferred the proposal for

. the next meeting.

20. Proposal in respect of MIs Met Trade India for change of name of company and

review of performance

The Committee ratified the approval of DC for taking the change of the name of company

l~ordS. The Committee also reviewed the performance of the unit and noted the

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(Minutes of Meeting of Approval Committee of Naida SEZ held on 20/03/2014

achievement of positive NFE by the unit as on 31/03/2013.

21. Proposal in respect of MIs Arditi India Pvt. Ltd. regarding taking the Date of

Commencement of Production (DCP) on records

The Committee discussed the agenda and decided that date of authenticated document

submitted as proof against first supply made in terms of Rule 53A(a-o) of the SEZ Rules,

2006 shall also be taken as date of commencement of production (DCP) in addition to date

of first Customs assessed Shipping Bill (self-certified commercial invoice in case of Service

unit).

22. Proposal in respect of MIs India Craft Loom for Review of performance

The Committee deferred the case for next meeting as nobody from the unit appeared

before the Committee.

23. Proposal in respect of MIs Diwa Exports for Review of performance

The Committee reviewed the performance and compliance with the terms & conditions of

the LOA by the unit and took note of the achievement of positive NFE by the unit as on

31/03/2013.

24. Proposal in respect of MIs Pana Exports for Review of performance

The Committee deferred the proposal with the directions to the unit to furnish a detailed

write up about their future action plan in respect of the unit.

25. Proposal in respect of MIs Dyno Electrics Pvt. Ltd. for Review of performance and

ratification of LOA renewal

The Committee reviewed the performance and compliance with the terms & conditions of

the LOA by the unit and took note of the achievement of positive NFE by the unit as on

31/03/2013. The Committee also ratified the approval of DC for extension of LOA granted

to the unit.

26. Proposal of MIs De Core Science & Technologies Ltd. for Review of performance I

Lease rent etc.

tu;g::mmittee noted that since a reference in the matter has already been made to the

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{Minutes of Meeting of Approval Committee of Noida SEZ held on 20/03/2014

Department of Commerce vide letter dated 25/10/2012, hence, the Committee decided to

defer the proposal till the receipt of reply from the Department of Commerce.

27. Proposal in respect of MIs Medico Electrodes International for Amalgamation of Plots

The Committee discussed the agenda and allowed amalgamation of Plot No. 142A/27 &

142A/28, NSEZ subject to condition that provisions relating to ground coverage, FAR and

setback of total area of land after amalgamation would be followed as per NaiDA by-laws.

28. Proposal in respect of MIs Vishwaas - Hearing for Adjudication of SCN

The Committee deferred the proposal as the unit representative did not appear before the

Committee.

29. Proposal in respect of Amendment of LOAs of units engaged in manufacture of

Gutkha & Pan Masala containing tobacco or nicotine as ingredients.

The Committee discussed the agenda and ratified the action taken on file for LOA

amendments of the respective units in light of Notification No. 6288/FSDA/FOOD/2012

dated 04/10/2012 issued by the Govt. of Uttar Pradesh.

30. Proposal in respect of Streamlining of Regulatory Mechanism for SEZ units in the

Gems and Jewellery Sector

The Committee took note of/ratified the action taken on individual files for LOA amendments

of the respective units in light of Instructions dated 31/12/2013 issued by the Department of

Commerce on the subject.

Additional Agenda:

1. Proposal in respect of MIs Ess Ess Traders for Renewal of LOA, Change in

constitution of firm and review of performance

On specific request from the unit, the Committee considered the proposal. The Committee,

however, deferred the proposal with the directions to the unit to first ensure compliance with

various documentary requirements and clearance of outstanding lease rent etc.

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

(Ma u Tentiwal)2-Y!6 ~J1n/yJt. Development Commissioher

(Dr. LB. Singhal)Development Commissioner