Home / Knowledge / News / Textiles / Sari out of made-ups realm; no excise duty on it: CBEC
Sari out of made-ups realm; no excise duty on it: CBEC
Mar '17
The Central Board of Excise and Customs (CBEC) has announced that sari will be kept out of the made-ups realm, which now attracts an excise duty of 2 per cent on a retail price of over Rs 1,000. Union finance minister Arun Jaitley had imposed the duty on made-up articles coming under chapters 61, 62 and 63 of the CETA Act, 1985 in Budget 2017-18.

The CBEC issued a circular saying that sari will be classified under chapters 50, 52 and 54 of the CETA Act, 1985.

"Representations have been received from the members of the trade requesting clarification regarding classification of 'sari'. The issue raised in these representations is whether the goods described as 'sari', 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 'sari' under Chapter 54 or as made-ups under Chapter 63 of the Central Excise Tariff Act, 1985," reads the circular.

The circular further adds that, "'Sari' 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 'sari' 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."

Representations to keep sari out of the made-ups realm were made by Southern Gujarat Chamber of Commerce and Industry (SGCCI) and Federation of Surat Textile Traders Association (FOSTTA). (KD)

Fibre2Fashion News Desk – India

Interviews View All

Textile industry, Head honchos

Textile industry
Head honchos

Athleisure is the current buzzword in fashion

Anshul Sood, Oceedee

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Victor Chao, Esmetex

Victor Chao

‘In future, clothing boundary lines will become increasingly blurred.’

Harsh Shah,

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Karen Lou,

Karen Lou

Australia-based Sunseeker has been creating swimwear since 1970. Sunseeker ...

Carmen Makover,

Carmen Makover

Leading the digital textile printing industry, Israel-based Kornit...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Urs Stalder, Sanitized AG

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

November 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Follow us on instagram


Follow Fibre2Fashion On

Follow Fibre2Fashion On

Advanced Search