CBEC clarifies that ‘Saree’ which has undergone further processing such as embroidery, stitching of lace and tikki 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; In case further processing of ‘Saree’ does not change the essential characteristics of the fabric as that of ‘Saree’, same should continue to be classified as “Saree”

Circular No. 1054/03/2017-CX dated March 15, 2017
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