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

Before suspending a Developer's letter of approval under the Special Economic Zones Act, 2005, the Board must first do which of the following?

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

  1. AObtain prior approval of Parliament for the suspension
  2. BGive the Developer at least three months' written notice stating the grounds and consider the cause shown within that notice periodCorrect
  3. CGive the Developer at least one year's written notice and obtain the State Government's consent
  4. DGive a notice of seven days and then appoint an Administrator immediately

Explanation

Section 10(3) bars suspension unless the Board has given the Developer not less than three months' written notice stating grounds and has considered any cause shown within that period. Parliamentary approval is not required for suspension. A seven-day notice falls short of the statutory minimum.

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