SEZ – Dual use of infrastructure permitted in non-processing area
20 January, 2015
of Commerce and Industry has allowed dual use of non-processing area in the
Special Economic Zones with effect from 2-1-2015. According to the newly
inserted Rule 11A in the Special Economic Zones Rules, 2006, the non-processing
area can be divided into two parts, wherein social or commercial infrastructure
and facilities in one part can be used both by SEZ entities and entities
present in the domestic tariff area, while facilities present in the other area
are to be used only by SEZ entities.
respect of facilities where dual use is permitted, the new provisions disallow
exemptions, concessions, or drawback for creation of such infrastructure and
states that Customs duty, Central Excise duty and Service tax and such other
tax benefits already availed for creation of such infrastructure have to be
refunded by the developer along with interest. The new provisions, inserted by
Notification No. G.S.R. 5(E), dated 2-1-2015, further provide norms with
respect to areas earmarked for residential, commercial and other social
facilities for the purpose of dual use. It may be noted that now schools,
colleges, socio-cultural centres, training institutes, banks, post office, etc.
are also allowed in such SEZ non-processing areas.