CHAPTER V - SINGLE WINDOW CLEARANCE
CHAPTER V
SINGLE WINDOW CLEARANCE
Constitution of Approval
Committee
13. (1) The Central Government shall,-
(a) in the case of existing Special Economic Zones, within six months from the date of commencement of this Act;
(b) in case of other Special Economic Zones established after the commencement of this Act, within six months from the date of establishment of such Special Economic Zone, by notification, constitute a Committee for every Special Economic Zone, to be called the Approval Committee to exercise the powers and perform the functions specified in section 14.
(2) Every Approval Committee shall consist of –
(a) the Development Commissioner - Chairperson, exofficio;
(b) two officers of the Central Government to be nominated by the Central Government - Members, exofficio;
(c) two officers of the Central Government to represent the Ministry or Department dealing with revenue – Members, ex officio;
(d) one officer of the Central Government to be nominated by that Government to represent the Ministry or Department dealing with the economic affairs (financial services) – Members, ex officio;
(e) two officers of the State Government concerned to be nominated by that Stated Government – Member, ex officio;
(f) a representative of the Developer concerned – Special invitee.
(3) For the purpose of exercising its powers and
performing its functions, the Approval Committee may invite to its meetings,
such persons as the Committee deems fit, whose assistance or advice it may
consider necessary.
(4) Every Approval Committee shall meet at such times and places as it considers
necessary and shall have the power to regulate its own procedure.
(5) One half of the total Members of the Approval Committee shall form a quorum,
and all the acts of the Approval Committee shall be decided by a general
consensus of the Members present.
Provided that in case the Approval Committee is unable to decide any matter by a
general consensus, such matter shall stand referred to the Board of Approval.
(6) No act of the Approval Committee shall be called in question on the ground
merely of existence of any vacancy in, or any defect in the constitution of, the
Approval Committee.
(7) All orders and decisions of the Approval Committee and all other
communications issued by it shall be authenticated by the signature of the
Chairperson or any other member as may be authorised by the Approval Committee
in this behalf.
(8) The term of office of an ex officio Member shall come to an end as soon as
he ceases to hold the office by virtue of which he was so nominated.
Powers and functions of Approval Committee
14. (1) Every Approval Committee may discharge the functions and
exercise the powers in respect of the following matters, namely:-
(a) approve the import or procurement of goods from the Domestic Tariff Area, in the Special Economic Zone for carrying on the authorised operations by a Developer;
(b) approve the providing of services by a service provider, from outside India, or from the Domestic Tariff Area, for carrying on the authorised operations by the Developer, in the Special Economic Zone;
(c) monitor the utilisation of goods or services or warehousing or trading in the Special Economic Zone;
(d) approve, modify or reject proposals for setting up Units for manufacturing or rendering services or warehousing or trading in the Special Economic Zone [other than the grant of licence under clause (e) of sub-section (2) of section 9] in accordance with the provisions of sub-section (8) of section 15;
Provided that where the Approval Committee is unable to decide whether a particular process constitutes manufacture or not, it shall refer the same to the Board of Approval for a decision.
(e) allow, on receipt of approval under clause (c) of subsection (2) of section 9, foreign collaborations and foreign direct investments (including investments by a person outside India) for setting up a Unit;
(f) monitor and supervise compliance of conditions subject to which the letter of approval or permission, if any, has been granted to the Developer or entrepreneur; and
(g) perform such other functions as may be entrusted to it by the Central Government or the State Government concerned, as the case may be.
(2) The Approval Committee shall not discharge such
functions and exercise such powers in relation to a Developer, being the Central
Government, as may be specified by notification by the Central Government.
Provided that till such time, the Approval Committee is constituted, the
concerned Development Commissioner shall discharge all functions and exercise
all powers of the Approval Committee.
Setting up of Unit
15. (1) Any person, who intends to set up a Unit for carrying on the
authorised operations in a Special Economic Zone, may submit a proposal to the
Development Commissioner concerned in such form and manner containing such
particulars as may be prescribed:
Provided that an existing Unit shall be deemed to have been set up in accordance
with the provisions of this Act and such Units shall not require approval under
this Act.
(2) On receipt of the proposal under sub-section (1), the Development
Commissioner shall submit the same to the Approval Committee for its approval.
(3) The Approval Committee may, either approve the proposal without
modification, or approve the proposal with modifications subject to such terms
and conditions as it may deem fit to impose, or reject the proposal in
accordance with the provisions of sub-section (8):
Provided that in case of modification or rejection of a proposal, the Approval
Committee shall afford a reasonable opportunity of being heard to the person
concerned and after recording the reasons, either modify or reject the proposal.
(4) Any person aggrieved, by an order of the Approval Committee, made under
sub-section (3), may prefer an appeal to the Board within such time as may be
prescribed.
(5) No appeal shall be admitted if it is preferred after the expiry of the time
prescribed therefor:
Provided that an appeal may be admitted after the expiry of the period
prescribed therefor if the appellant satisfies the Board that he had sufficient
cause for not preferring the appeal within the prescribed time.
(6) Every appeal made under sub-section (4) shall be in such form and shall be
accompanied by a copy of the order appealed against and by such fees as may be
prescribed.
(7) The procedure for disposing of an appeal shall be such as may be prescribed:
Provided that before disposing of an appeal, the appellant shall be given a
reasonable opportunity of being heard.
(8) The Central Government may prescribe,-
(a) the requirements (including the period for which a Unit may be set up)
subject to which the Approval Committee shall approve, modify or reject any
proposal referred to in subsection (3);
(b) the terms and conditions, subject to which the Unit shall undertake the
authorised operations and its obligations and entitlements.
(9) The Development Commissioner may, after approval of the proposal referred to
in sub-section (3), grant a letter of approval to the person concerned to set up
a Unit and undertake such operations which the Development Commissioner may
authorise and every such operation so authorised shall be mentioned in the
letter of approval.
Cancellation of letter of approval to entrepreneur
16. (1) The Approval Committee may, at any time, if it has any reason
or cause to believe that the entrepreneur has persistently contravened any of
the terms and conditions or its obligations subject to which the letter of
approval was granted to the entrepreneur, cancel the letter of approval:
Provided that no such letter of approval shall be cancelled unless the
entrepreneur has been afforded a reasonable opportunity of being heard.
(2) Where the letter of approval has been cancelled under subsection (1), the
Unit shall not from the date of such cancellation, be entitled to any exemption,
concession, benefit or deduction available to it, being a Unit, under this Act.
(3) Without prejudice to the provisions of this Act, the entrepreneur whose
letter of approval has been cancelled under sub-section (1), shall remit, the
exemption, concession, drawback and any other benefit availed by him in respect
of the capital goods, finished goods lying in stock and unutilised raw materials
relatable to his Unit, in such manner as may be prescribed.
(4) Any person aggrieved by an order of the Approval Committee made under
sub-section (1), may prefer an appeal to the Board within such time as may be
prescribed.
(5) No appeal shall be admitted if it is preferred after the expiry of the time
prescribed therefor:
Provided that an appeal may be admitted after the expiry of the period
prescribed therefor if the appellant satisfies the Board that he had sufficient
cause for not preferring the appeal within the prescribed time.
(6) Every appeal made under sub-section (4) shall be in such form and shall be
accompanied by a copy of the order appealed against and by such fees as may be
prescribed.
(7) The procedure for disposing of an appeal shall be such as may be prescribed:
Provided that before disposing of an appeal, the appellant shall be given a
reasonable opportunity of being heard.
Setting up and operation of Offshore Banking Unit.
17. (1) An application for setting up and operation of an Offshore
Banking Unit in a Special Economic Zone may be made to the Reserve Bank in such
form and manner as may be prescribed.
(2) On receipt of an application under sub-section (1), the Reserve Bank shall,
if it is satisfied that the applicant fulfills all the conditions specified
under sub-section (3), grant permission to such applicant for setting up and
operation of an Off-shore Banking Unit.
(3) The Reserve Bank may, by notification, specify the terms and conditions
subject to which an Offshore Banking Unit may be set up and operated in the
Special Economic Zone.
Setting up of International Financial Services Centre
18. (1) The Central Government may approve the setting up of Setting
up of an International Financial Services Centre in a Special Economic Zone and
may prescribe the requirements for setting up and operation of such Center:
Provided that the Central Government shall approve only one International
Financial Services Centre in a Special Economic Zone.
(2) The Central Government may, subject to such guidelines as may be framed by
the Reserve Bank, the Securities and Exchange Board of India, the Insurance
Regulatory and Development Authority and such other concerned authorities, as it
deems fit, prescribe the requirements for setting up and the terms and
conditions of the operation of Units in an International Financial Services
Centre.
Single application form, return, etc
19. Notwithstanding anything contained in any other law for the time
being in force, the Central Government may, if required, -
(a) prescribe a single application form for obtaining any licence, permission or registration or approval by a Developer, or an entrepreneur under one or more Central Acts;
(b) authorise the Board, the Development Commissioner or Approval Committee, to exercise the powers of the Central Government on matters relating to the development of a Special Economic Zone; or setting up and operation of units;
(c) prescribe a single form for furnishing returns or information by a Developer or an entrepreneur under one or more Central Acts.
Agency to inspect
20. Notwithstanding anything contained in any other law for the time
being in force, the Central Government may, by notification, specify any officer
or agency to carry out surveys or inspections for securing of compliance with
the provisions of any Central Act by a Developer or an entrepreneur, as the case
may be, and such officer or agency shall submit verification and compliance
reports, in such manner and within such time as may be specified in the said
notification.
Single enforcement officer or agency for notified
offences
21. (1) The Central Government may, by notification, specify any act
or omission made punishable under any Central Act, as notified offence for
purposes of this Act.
(2) The Central Government may, by general or special order, authorise any
officer or agency to be the enforcement officer or agency in respect of any
notified offences or committed in a Special Economic Zone.
(3) Every officer or agency authorised under sub-section (2) shall have all the
corresponding powers of investigation, inspection or search or seizure as is
provided under the relevant Central Act in respect of the notified offences.
Investigation, inspection and search or seizure
22. The agency or officer, specified under section 20 or section 21,
may, with prior intimation to the Development Commissioner concerned, carry out
the investigation or search or seizure in the Special Economic Zone or in a Unit
if such agency or officer has reasons to believe (reasons to be recorded in
writing) that a notified offence has been committed or is likely to be committed
in the Special Economic Zone:
Provided that no investigation, search or seizure shall be carried out in a
Special Economic Zone by any agency or officer other than those referred to in
sub-section (2) or subsection of section 21 without prior approval of the
Development Commissioner concerned.
Provided further that any officer of agency, if so authorised by the Central
Government, may carry out the investigation, inspection, search or seizure in
the Special Economic Zone or Unit without prior intimation or approval of the
Development Commissioner.
Designated Courts to try suits and notified offences
23. (1) The State Government, in which the Special Economic Zone is
situated, may, with the concurrence of the Chief Justice of the High Court of
that State, designate one or more courts-
(a) to try all suits of a civil nature arising in the Special Economic Zone; and
(b) to try notified offences committed in the Special Economic Zone.
(2). No court, other than the court designated under
subsection (1), shall try any suit or conduct the trial of any notified offence
referred to in that sub-section:
Provided that the courts, in which any suit of a civil nature in a Special
Economic Zone had been filed before the commencement of this Act, shall continue
to try such suit after such commencement:
Provided further that the courts in which any trial of any notified offence is
being conducted before the commencement of this Act, shall continue to conduct
the trial of such offence after the commencement of this Act:
Provided also that the courts competent to try any notified offence before the
commencement of this Act, shall conduct the trial in respect of such offence
after the commencement of this Act until the courts have been designated under
sub-section (1) and all such cases relating to such trials shall thereafter be
transferred to such Courts so designated which shall conduct the trial from the
stage at which such cases were so transferred.
Appeal to High Court
24. Any person aggrieved, by any decision or order of the court
designated under sub-section (1) of section 23, may file an appeal to the High
Court within sixty days from the date of communication of the decision or order
of the Courts so designated to him on any question of fact or law arising out of
such orders:
Provided that the High Court may, if it is satisfied that the appellant was
prevented by sufficient cause from filing an appeal within the said period,
allow it to be filed within a further period not exceeding sixty days.
Explanation.- In section 23 and this section “High Court†means the High Court
of the State in which the Special Economic Zone is situated.
Offences by companies
25. (1) Where an offence has been committed by a company, every
person, who at the time the offence was committed was in charge of, and was
responsible to, the company for the conduct of the business of the company, as
well as the company, shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person
liable to any punishment provided for the offence, if he has proved that the
offence was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence has
been committed by a company and it is proved that the offence has been committed
with the consent or connivance of, or is attributable to any neglect on the part
of, any director, manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall also be deemed to be guilty
of the offence and shall be liable to be proceeded against and punished
accordingly.
Explanation.- For the purposes of this section,-
(a) “company†means any body corporate and includes a firm or other association
of individuals; and
(b) “directorâ€, in relation to a firm, means a partner in the firm.
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