Circular No. 1054/03/2017-CX
F. No. 116/31/2016-CX.3
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
New Delhi, dated the 15
th
March, 2017
To
The Principal Chief Commissioners/ Chief Commissioners/Principal Commissioners of
Central Excise (All)
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners of
Central Excise & Service Tax (All)
Madam/ Sir,
Sub: Classification of ‘Saree’ under CETA, 1985-reg.
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.
2. The issue has been examined. As per Rule (1) of General Rules of Interpretation of
the Schedule, “The titles of Sections, Chapters and Sub-Chapters are provided for ease of
reference only; for legal purposes, classification shall be determined according to terms of
the headings and any relative Section or Chapter Notes…”. Further, as per Rule 3(a) of the
said Rule, “The heading which provides the most specific description shall be preferred to
headings providing a more general description….”.
3. „Saree‟ has been specifically classified under Chapter 50, 52 and 54 of the Central
Excise Tariff Act, 1985 depending upon the material of the fabrics. Further, even after
stitching, embroidery work and fixing of falls etc., a „saree‟ remains fabrics only as no new
item emerges having distinct name, character and use. Stitching of two or more different
kinds of fabrics also does not take away its classification from heading 50, 52 or 54 as in that
case, by virtue of Section note 2(A) of Section XI, such „saree‟ will be classifiable under the
heading as if consisting wholly of that one textile material which predominates by weight
over any other single textile material. In case no one textile material predominates by weight,
„saree‟ is to be classified as if consisting wholly of that one textile material which is covered
by the heading which occurs last in numerical order among those which equally merit
consideration.
4. Chapter 63 covers „Other made up textile articles; sets; worn clothing and worn textile
articles; rags‟ which is a more general description. „Saree‟ is not specifically classified in this
chapter and therefore application of Rule 3(a) [refer para 2] would take out „Saree‟ outside
the ambit of chapter 63.
5. 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‟.
6. Difficulty faced, if any, in implementing the circular should be brought to the notice of
the Board. Hindi version will follow.
(ROHAN)
Under Secretary to the Govt. of India