ENA Economy 2017-03-18 05:41:25 <p><strong>New Delhi, Mar 18 (KNN)</strong> Indian sarees will no longer face excise duty irrespective of whether saris have undergone processes such as embroidery, stitching of lace or is even stitched with two or more kinds of fabrics as it will be classifiable as Saree‟ and not as made-ups.</p> <p> A 2% excise duty is levied on made-ups with a retail price of over Rs 1,000.</p> <p>According to a Central Board of Excise and Customs (CBEC) circular, 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‟.</p> <p>The circular follows representations by various associations asking for garments that have undergone additions to still be classified as saris in the central excise Act, not as made-ups.</p> <p>The CBEC said the sari has been specifically classified under chapters 50, 52 and 54 of the Central Excise Tariff Act, 1985, depending on the fabric.</p> <p>Further, even after stitching, embroidery work and fixing of falls, a sari remains fabric as no new item emerges having a distinct name, character and use. Stitching of two or more different kinds of fabrics also does not take away the classification given in these chapters.</p> <p>The sari is not specifically covered in the chapter dealing with made-ups, it pointed out.</p> <p>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, aid CBEC. <strong>(KNN Bureau)</strong></p> 16659 http://knnindia.co.in/news/newsdetails/economy/indian-sarees-will-not-face-excise-duty-even-if-undergone-embroidery-stitching-of-lace-etc-cbec 2017-03-18 05:41:25 knnindia.co.in