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

Under section 4 of the SEZ Act, 2005, which statement about an existing Special Economic Zone and additional area is correct?

An existing Special Economic Zone is deemed to have been notified and established under the Act, and the Central Government may, after notifying a zone, notify further additional area as part of it. The Act has no re-notification requirement and gives that power to the Central Government.

  1. AAn existing Special Economic Zone is deemed notified and established under the Act, and the Central Government may later notify additional area as part of that zoneCorrect
  2. BAn existing Special Economic Zone must be re-notified within one year or it ceases to exist
  3. CNo additional area can be added once a zone has been notified
  4. DThe Board, not the Central Government, notifies additional area

Explanation

The first proviso to section 4(1) deems an existing SEZ to be notified and established under the Act. The second proviso lets the Central Government notify additional area after notifying the zone. There is no re-notification requirement and the notification power rests with the Central Government.

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