Circular No.1054/03/2017CX, dt. 1532017

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The Tax Publishers CIRCULAR NO.1054/03/2017-CX, DATED 15-3-2017 CENTRAL EXCISE ACT, 1944 - CLARIFICATION 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….". SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

CIRCULAR NO.1054/03/2017-CX, DATED 15-3-2017

CENTRAL EXCISE ACT, 1944 - CLARIFICATION 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….".