Circular No.ES/ 339/2016-17 March 16, 2017
To: Members of the Council
Sub: Classification of 'Saree' under Comprehensive Economic and Trade Agreement (CETA), 1985
Dear Member,
CBEC has issued Circular No. 1054/03/2017-CX dated 15.03.2017 on the above subject.
In this connection, representations have been received from the members of the trade requesting clarification regarding classification of „Saree‟. The issue raised in these representations is whether the goods described as „Saree‟ which has undergone further processing such as embroidery, stitching of lace and tikki etc. and stitched with two or more kinds of fabrics is classifiable as “Saree‟ under Chapter 54 or as made-ups under Chapter 63 of the Central Excise Tariff Act, 1985.
In view of above, it is clarified that “Saree‟ which has undergone further processing such as embroidery, stitching of lace and tikki etc. and stitched with two or more kinds of fabrics will be classifiable as “Saree‟ under Chapter 50, 52 and 54 of the Central Excise Tariff Act, 1985 depending upon the material of the fabrics, and not as made-ups under Chapter 63 of the said Act. Each case may be decided on the basis of facts of the case and where further processing of “Saree‟ does not change the essential characteristics of the fabric as that of “Saree‟, it should continue to be classified as “Saree‟.
For more information, you may refer to the above Circular and make note of the same.
Thanking you,
V. ANIL KUMAR
Executive Director
