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G. Gurumurthy

COIMBATORE, June 6

THE Federation of Hosiery Manufacturers Association (FOHMA), which is holding its annual general meeting in Tirupur on Friday, wants the Centre to exempt the hosiery goods from the amended provisions of the Central Sales Tax (CST) Act that makes `C' forms compulsory in the inter-State transactions.

The Centre's recent amendment to the relevant Act this year holding `C' forms for goods supplied under inter-State sale compulsory to entitle the CST would affect the hosiery goods. CST would be applicable only to the registration certification (RC) holders. Those who failed to furnish the `C' forms would be subjected to 10 per cent sales tax. The federation feels that this amendment to the Act has hit the small traders of hosiery goods, especially those in the upcountry markets where nearly 80 per cent of them are not registered under the CST. These traders draw their hosiery goods under inter-State transactions, mostly from Tirupur, Ludhiana and Kolkata.

It would be impossible for the low-profile undergarment dealers to have `C' forms and imposition of the same would bar them from getting the hosiery goods, the federation said.

The FOHMA, which may take up this issue in its AGM and represent to the Union Textile Minister, Mr Kashiram Rana, who is scheduled to inaugurate the meet, has pointed out that the Gujarat and Delhi governments have exempted hosiery goods valued up to Rs 100 from the incidence of any local levies.

The federation has also sought exemption from the packaged commodities rules enforced under the Weights and Measures Act for the hosiery goods.

The federation's AGM, which will seek relaxation in the labour legislation, has urged the Government to exempt units engaging workers less than 50 from the purview of the Factories Act as suggested by the Abid Hussain Committee.

It will press the Centre to make ESI scheme optional for the knitwear sector. It is also expected to express opposition to the recent move by the Centre to de-reserve the hosiery sector from the list of SSI sector.

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