South Gujarat textile processors protest cess order

The processors of Surat have decided to approach the Gujarat High Court to challenge the textile tribunal's order, according to which, they are eligible to pay textile cess.

A decision in this regard was taken during a meeting of the South Gujarat Textile Processors Association (SGTPA) on Friday evening.

The textile cess of 0.25 per cent is collected by the textiles committee, which functions under the textile ministry. The committee and processors have been at loggerheads for the past four years over the issue.

"We are doing the processing work on a jobwork basis. Hence, we are not eligible to pay the cess," said Ramesh Gajjar, president of SGTPA.

"The processors had approached the textile tribunal and challenged the committee's decision. But the tribunal had rejected the plea of the processors recently, and held them eligible for paying textile cess," added Gajjar.

He said that the SGTPA had decided to approach the Gujarat HC in the coming days to challenge the tribunal's order.

Jitu Vakharia, the association's vice-president said that the textile ministry should abolish the textile committee cess at the earliest.

"There have been reports recently that the Textile Committee has become self-sufficient. Hence, the Centre should do away with the 0.25 per cent cess at the earliest. The textile industry has been demanding abolition of cess since long and the government should listen to the industry," he said.

SGTPA has also decided to ask the Centre to extend the technology upgradation fund (TUF) scheme till 2010.

"The TUF scheme for the textile industry will expire in 2007, but we believe the government should extend it till 2010. Though the government has ruled out any such move, the demand should be given a serious thought. The extended time-frame would enable more and more units to upgrade," Vakharia added.