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

Under the Special Economic Zones Act, 2005, which statement about the Central Government's power to modify other enactments in relation to SEZs by notification is correct?

The power cannot extend to sections 54 to 56 of the SEZ Act, and it cannot be used to modify matters relating to trade unions, industrial and labour disputes, labour welfare, provident funds and similar labour protections. Within these limits, laws may be disapplied or applied with modifications.

  1. AIt can apply to any provision of the Act including sections 54 to 56, and also to labour welfare matters such as provident funds
  2. BIt cannot apply to sections 54 to 56 of the Act, and cannot be used to modify matters such as trade unions, industrial disputes and provident fundsCorrect
  3. CIt can only be used to make a Central Act inapplicable, never to apply it with modifications
  4. DIt takes effect immediately and need not be laid in draft before Parliament

Explanation

The power excludes sections 54 to 56 of the Act. The proviso bars modifications on trade unions, industrial and labour disputes, labour welfare including provident funds and similar matters. The power also allows application with exceptions, modification and adaptation, and the draft notification must be laid before Parliament for thirty days.

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