Amendments to Notification notifying authorized operations in SEZs – In amending notifications Commerce as good as Finance – And this is no compliment to either

By Vijay Kumar

The Central Government has issued an amendment to Notification No. NIL dated 27 th October, 2006 as follows:

In Paragraph B for the heading "Sector Specific Special Economic Zones" the following amendment is proposed by way of substitution, namely:-

"Sector Specific Special Economic Zones including Special Economic Zones for Free Trade and Warehousing”

And for the item at clause (xxx) and the entries relating there to, the following amendment is substituted, namely:-

"(xxx) Warehousing and Commercial operations;

(xxxi) Such other operations which the Board of Approval may authorize from time to time"

Prior to this amendment clause (xxx) read as follows:

(xxx) Any other operation ancillary or incidental to operations specified above from (i) to (xxix) which the Board of Approval may authorise from time to time.

Now in addition to clause (xxx) a new clause (xxxi) is also introduced.

Further, in Paragraph C, for item (xxxii) and the entries relating thereto, the following amendment is proposed by way of substitution, namely:-

"(xxxii) Warehousing and Commercial operations

(xxxiii) Such other operations which the Board of Approval may authorize from time to time"

Prior to this amendment clause (xxxii) read as follows:

(xxxii) Drip and Micro irrigation systems

Unfortunately, the Notification already has a clause (xxxiii) which reads as follows:

(xxxiii) Any other operation ancillary or incidental to operations specified above from (i) to (xxxii) which the Board of Approval may authorise from time to time.

Now what will happen to these existing clauses (xxxii) and (xxxiii)? Assuming that clause (xxxii) is substituted, and then does it mean that Drip and Micro irrigation systems is not part of authorized operations in Multi Product SEZs? Also can we assume that this clause (xxxiii) is deleted altogether and replaced by a new clause as mentioned in the amendment? Without any express provision in the amending notification this assumption may be erroneous. Ideally the Babus should have re-numbered clause (xxxiii) while issuing this amendment. This only shows that the Babus in Commerce Ministry and Finance Ministry sail in the same boat when it comes to goofing up subordinate legislations.

NOTIFICATION NO. NIL Dated: 27th July, 2009