Skip to content

CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Special Economic Zones

Meera Textiles Ltd. proposes a processing activity in an SEZ, and there is doubt whether the activity counts as 'manufacture'. Under the SEZ Act, 2005, what is the effect of the Board's notified decision on this?

The Board's notified decision is binding on all Ministries and Departments of the Central Government. Under section 9(3), the Board may decide by notification whether an activity constitutes manufacture, and that decision is not advisory and needs no court confirmation.

  1. AIt is binding on all Ministries and Departments of the Central GovernmentCorrect
  2. BIt is only advisory and each Ministry may take its own view
  3. CIt binds only the Ministry of Commerce and Industry
  4. DIt takes effect only after confirmation by the Supreme Court

Explanation

Section 9(3) allows the Board, by notification, to decide whether a particular activity constitutes manufacture as defined in section 2(r). That decision binds all Ministries and Departments of the Central Government, so it is not merely advisory or limited to one Ministry.

Did you get it right without looking?

One question tells you little. A timed set on Law relating to Special Economic Zones shows your real accuracy, how long you take and where you lose marks.

Practise Law relating to Special Economic ZonesFree diagnostic mock

More Law relating to Special Economic Zones questions