Winding up of a unit

The Unit may choose to step out of the Special Economic Zone with the approval of the Development Commissioner and such exit shall be subject to payment of applicable duties on the imported or indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock and if the unit has not achieved positive Net Foreign Exchange, the exit shall be subject to penalty that may be imposed under the Foreign Trade (Development and Regulation), Act, 1992. (Rule 74(1)

The following conditions shall apply to the unit winding up: -

1)       Penalty imposed by the competent authority would be paid and in case an appeal against an order-imposing penalty is pending, exit shall be considered if the unit has obtained a stay order from competent authority and has furnished a 

Bank Guarantee for the penalty adjudicated by the appropriate authority unless the appellate authority makes a specific order exempting the Unit from this Requirement.

2)       In case the Unit has failed to fulfill the terms and conditions of the Letter of Approval and penal proceedings are to be taken up or are in process, a legal  Undertaking for payment of penalties, that may be imposed, shall be executed with The Development Commissioner.

3)       The Unit shall continue to be treated a unit till the date of final exit.

- Rule 74(2)

In the event of a gems and jewellery unit ceasing its operation, gold and other precious metals, alloys, gem and other materials available for manufacture of jewellery shall be handed over to an agency nominated by the Central Government at a price to be determined by that agency. - Rule 74(3)

Development Commissioner may permit a Unit, as one time option, to exit from Special Economic Zone on payment of duty on capital goods under the prevailing Export Promotion Capital Goods Scheme under the Foreign Trade Policy subject to the Unit satisfying the eligibility criteria under that Scheme.

Depreciation shall be allowed in straight line method as specified below:-

1)       1)for computer and computer peripherals for every quarter in the 1^st, 2^nd and 3^rd year at the rate of 10%, 8% and 5% respectively and for every quarter in the 4^th  and 5th year at the rate of 1%.

2)       for capital goods other than computer and computer peripherals for every quarter in the 1^st, 2^nd, 3^rdyear at the rate of 4%, 3% and 3% respectively, for every quarter in the 4^th  and 5^th  year at the rate of 2.5%  and thereafter for every quarter at the rate of 2%.

For the purpose of computing depreciation for any part of a quarter, the rate applicable to such quarter in full shall be considered.