Saree Classified under Chapter 50, 52 and 54
of the CETA, 1985 Depending upon the Material of the
Fabrics and not as Made-ups
[CBEC Circular No. 1054 dated 15th March
2017]
Sub: Classification of ‘Saree’ under CETA, 1985.
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.