According to Dinesh Parekh, president of the Federation the CBEC chairman gave a patient hearing to the problems facing the industry and assured them that he will try to evolve a uniform procedure throughout the country. This move would require enactment, he added.

Meanwhile the Federation has called off its strike for the time being and has decided to wait for the response from the CBEC. In case the approach is found negative the textile processors and merchants in Mumbai and adjoining areas will resume the strike on token basis. The Federation had called a two day strike against the harassment of excise officials by way of raids and seizure of accounts books. Thousands of processing and trading units in the region hadobserved a two-day bandh on June 24 and 25.

The crux of the issue is very simple, assert the agitators. After several representations by the processing community, the former CBEC chairman had agreed on July 28, 1997 that the excise duty rate of 12.8 per cent on total value of processed fabrics was very harsh, as it was tantamount to a levy of Rs 5.00 lakh per working chamber per month. It was termed to be an unjustifiable levy as the processors undertake jobwork on slim margins for merchant manufacturers and have little to do with the total value of processed fabric.

After several rounds of negotiations it was agreed that a levy of Rs. 1.50 lakh per chamber per month at a flat rate would be levied. The rate was accepted to be reasonable by both the parties and was decided that the excise department will comply the formula.

Strangely the excise commissionerate in Mumbai refused to implement the agreed mechanism while its counterparts in other states like Gujarat, Andhra Pradesh, Punjab and othersaccepted it wholeheartedly. The Federation decided to protest the discriminatory approach and reiterated to implement the agreement arrived at last year.

They have demanded immediate unconditional release of all seized records, as well as grey and other fabrics.

They have also asked for immediate reversal of amounts debited forcibly in the personal ledger accounts and return of cheques extracted by coercion from the processors and merchants. The processors also wants the excise authorities to desist from all types of harassment in connection with the ongoing inquiries related to recent raids and stop further raids and expeditiously implement the reasonable demands of the industry.