Section 77(5) in The Special Economic Zones Rules, 2006
(5)An entrepreneur whose Letter of Approval has been canceled and has failed to meet positive net foreign exchange earning as required under rule 52, it shall be liable for payment of penalty as may be imposed by the adjudicating authority in accordance with the provisions of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992):Provided that raw materials, components, consumables and spares procured from Domestic Tariff Area held in stock at the time of cancellation of Letter of Approval, on which any export entitlements were availed, shall be removed to the Domestic Tariff Area on payment of additional duty equivalent to the export entitlements availed:Provided further that goods on which no export entitlements or duty exemption were availed on their procurement from Domestic Tariff Area, shall be removed to Domestic Tariff Area, without payment of duty.[78. E-filing - Every developer and until shall file applications and returns electronically on the Special Economic Zone online system, within a period of one month of the system, within a period of one month of the system being commissioned.][79. Audit in Special Economic Zones for indirect taxes. [Inserted by Notification No. G.S.R. 772(E), dated 5.8.2016 (w.e.f. 10.2.2006).]- All the authorized operations under Special Economic Zones Act, 2005 and transactions relating thereto in Special Economic Zones and Units in the Special Economic Zones shall be audited by the Customs officers from a panel drawn by the Jurisdictional Development Commissioner in consultation with the Jurisdictional Chief Commissioner of Customs and Central Excise.]
