Textile Processors move Gujarat High Court on cess exemption
27 Dec '05
1 min read
The Textile Committee, functioning under the Union Textile Ministry had issued notices to over 180 processors of Surat to pay the outstanding textile cess amount by December 31.
The committee and the processors have been unable to come to an amicable settlement over this vexed problem after several years now.
The processors approached the Textile Tribunal and they too overruled their plea and instructed them to pay the cess.
The processors have now filed petitions in Gujarat High Court. It has admitted the petitions of 45 processors, but is yet to fix a date for hearing of the petitions.
South Gujarat Textile Processors Association (SGTPA) President Ramesh Gajjar put forth the argument that the processing of textiles is done on a jobwork basis. They do not own the grey and are therefore not liable to pay the cess.
A leading processor said, textile cess is levied at the yarn stage. Weaving stage is exempt from paying the cess. The processors who process the textiles on jobwork basis should also be exempted from paying cess, explained a leading processor.
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