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

Before the Board suspends the letter of approval of a Developer under section 10 of the SEZ Act, 2005, what procedural requirement must be met?

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 period. Without this notice and consideration, suspension of the letter of approval is not permitted.

  1. AThe Board must give the Developer at least one month's oral notice
  2. BThe Board must obtain prior approval of Parliament
  3. CThe Board must give not less than three months' written notice stating the grounds and consider the cause shown by the DeveloperCorrect
  4. DThe Board must first obtain the consent of the State Government

Explanation

Section 10(3) bars suspension unless the Board has given the Developer not less than three months' notice in writing stating the grounds, and has considered any cause shown within that notice period. Oral or one-month notice, Parliament approval or State consent are not required by this provision.

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