Hosiery manufacturers here submitted memoranda to Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee seeking withdrawal of central excise duty on ready-made apparels announced in the Budget.

South India Hosiery Manufacturers Association (SIHMA) general secretary V. Ponnusamy said the levy of 10 per cent on cotton knitted garments such as vests and briefs, covered under Chapter 61 of the Central Excise Tariff, would have a cascading effect on the family budget of the common man since those were used more like domestic consumables.

“Such products from clusters like Tirupur cannot be considered luxurious items like suits and trousers and hence the levy should be removed,” Mr. Ponnusamy said.

The hosiery manufacturers said they were not against any levy of duty but were opposing the recent one because the sector was already under operational stress owing to abnormal rise in cotton and yarn prices and other problems.

Excise duty

“Moreover, the manufacturing process of knitted garments like vests and briefs is rather unique since the entire manufacturing chain never falls under one roof.

This makes the job of entrepreneurs to maintain records needed for the mandatory excise duty compliance hard,” the hosiery manufacturers said.