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CMA Final · Indirect Tax Laws and Practice · Special Economic Zone Scheme

Before suspending a Developer's letter of approval under Section 10 of the SEZ Act, 2005, which procedural requirement must the Board satisfy?

The Board must give the Developer not less than three months' written notice stating the grounds for proposed suspension, and it must consider any cause the Developer shows within that notice period. Without this, the letter of approval cannot be suspended under Section 10.

  1. AObtain prior approval of Parliament by resolution
  2. BGive the Developer at least one month's written notice of the grounds
  3. CGive the Developer not less than three months' written notice stating the grounds and consider any cause shown within that notice periodCorrect
  4. DObtain consent of the State Government in every case

Explanation

Section 10(3) bars suspension unless the Board has given not less than three months' written notice stating the grounds and has considered any cause shown by the Developer within that period. One month is too short, and neither Parliament's nor the State's approval is required by this provision.

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