AMENDMENT MATERIAL CENTRAL EXCISE RULES

Transcription

1 AMENDMENT MATERIAL CENTRAL EXCISE RULES Rule 21 (1)Where it is shown to the satisfaction of the Principal Commissioner or Commissioner, as the case may be that goods have been lost or destroyed by natural causes or by unavoidable accident or are claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal, he may remit the duty payable on such goods, subject to such conditions as may be imposed by him by order in writing: Amount of ED sought to be remitted Upto 10,000/- Exceeding 10, 000/- but upto 1,00,000/ - Exceeding 1,00, 000/ - but upto 5,00,000/ - Exceeding 5,00,000 / - Level of Officer to whom application shall be submitted SCE AC/DC JC / ADDL COMMISSIONER COMMISSIONER/ Principal Commissioner (2)The authority referred to in sub-rule (1) shall, within a period of three months from the date of receipt of an application, decide the remission of duty: Provided that the period specified in this sub-rule may, on sufficient cause being shown and reasons to be recorded in writing, be extended by an authority next higher than the authority before whom the application for remission of duty is pending, for a further period not exceeding six months.....2/2/ ca.vvaidya@gmail.com

2 Explanation I {To CC Rule 6(3) &6(3A)} "Value" for the purpose of sub-rules (3) and (3A), (a)shall have the same meaning as assigned to it under section 67 of the Finance Act, read with rules made thereunder or, as the case may be, the value determined under section 3, 4 or 4A of the Excise Act, read with rules made thereunder; (b) In the case of a taxable service, when the option available under sub-rule (7), (7A), (7B) or (7C) of rule 6 of the Service Tax Rules, 1994, has been availed, shall be the value on which the rate of service tax under section 66B of the Finance Act, read with an exemption notification, if any, relating to such rate, when applied for calculation of service tax results in the same amount of tax as calculated under the option availed; (c) In case of trading, shall be the difference between the sale price and the cost of goods sold (determined as per the generally accepted accounting principles without including the expenses incurred towards their purchase) or ten per cent of the cost of goods sold, whichever is more; (d)in case of trading of securities, shall be the difference between the sale price and the purchase price of the securities traded or one per cent of the purchase price of the securities traded, whichever is more; (e) Shall not include the value of services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount: Provided that this clause shall not apply to a banking company and a financial institution including a non-banking financial company, engaged in providing services by way of extending deposits, loans or advances... 2/2/ ca.vvaidya@gmail.com

3 CCRule 10 Transfer of CENVAT credit. (1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of liabilities of such factory, then, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory. (2) If a provider of output service shifts or transfers his business on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the business to a joint venture with the specific provision for transfer of liabilities of such business, then, the provider of output service shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated business. (3) The transfer of the CENVAT credit under sub-rules (1) and (2) shall be allowed only if the stock of inputs as such or in process, or the capital goods is also transferred along with the factory or business premises to the new site or ownership and the inputs, or capital goods, on which credit has been availed of are duly accounted for to the satisfaction of the Deputy Commissioner of Central Excise or, as the case may be, the Assistant Commissioner of Central Excise. (4) Subject to the provisions contained in sub-rule (3), the transfer of the CENVAT Credit shall be allowed within a period of three months from the date of receipt of application by the Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be: Provided that the period specified in this sub-rule may, on sufficient cause being shown and reasons to be recorded in writing, be extended by the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be, for a further period not exceeding six months....inserted 2/2/ ca.vvaidya@gmail.com

4 SECTION 35B OF THE CENTRAL EXCISE ACT, APPELLATE TRIBUNAL, APPEALS TO - FILING OF APPEAL/APPLICATION BEFORE CESTAT & UNDERTAKING TO BE GIVEN BY APPELLANT/APPLICANT CESTAT CIRCULAR NO.01(05)/CIRCULAR/CESTAT/2017, DATED Instances are noticed that while filing appeal/application before CESTAT, parties are seeking alternate/simultaneous remedies before other forums such as Hon'ble High Courts/Supreme Court which were invariably suppressed while filing appeal/applications etc. before CESTAT. Therefore, all the concerned parties may be directed that while filing appeal/applications before this Tribunal they have to give an undertaking in the following format along with the appeals/applications to be filed before CESTAT. "Matter not previously filed or pending before any other legal forum including Hon'ble High Courts/Supreme Court. The appellant/applicant further declares that he has not previously filed any appeal, writ petition or suit regarding the impugned order, before any court or any other authority or any other Bench of the Tribunal." EXCISE - COST OF PRODUCTION OF CAPTIVELY CONSUMED GOODS - PERIODICITY OF CAS-4 CERTIFICATES INSTRUCTION [F.NO.206/01/2017-CX.6], DATED Kind attention is invited to Board's Circular No. 692/08/2003-CX dated 13th February, 2003 by which it was clarified that cost of production of captively consumed goods shall be done strictly in accordance with CAS Instances have been highlighted during C &AG audit that some assessee are not preparing CAS-4 certificates even after substantial time lapse from ending of financial year and filing of Tax Audit reports and therefore these assessee could not calculate the differential duty. 3. In this regard, it is directed that assessee should be requested that CAS-4 certificate of the financial year ending on 31st March shall be issued by 31st December of the next financial year. For example, for the Financial Year , CAS-4 certificate should be issued by The assessing officer shall thereafter finalize the provisional assessment expeditiously. Jurisdictional Commissioners shall suitably issue the trade facility in this regard. 4 ca.vvaidya@gmail.com

5 ADJOURNMENTS - PARTIES SEEKING ADJOURNMENTS IN OPEN COURT SHOULD INTIMATE OPPOSITE PARTIES AT LEAST BEFORE 48 HOURS OF HEARING OF APPEAL/CASES CIRCULAR F.NO.32 (27)/MISC./DR(J)/JUDL 2016, DATED It has been observed that the advocates/consultants and authorized representative of the parties(assesses) are seeking adjournments in the open court at the time of hearing which cause difficulties to other parties who have made the preparation and travelled to argue the case. Therefore, all parties are hereby requested to intimate regarding seeking of adjournment to the opposite parties (counsel) at least before 48 hrs of hearing of the appeal/cases. Parties are requested to exchange written note/case law etc. at least 48 hrs in advance. 5 ca.vvaidya@gmail.com

6 CESTAT (PROCEDURE) RULES, AMENDMENT IN RULES 2 AND 8 CESTAT NOTIFICATION NO.1 OF 2017 [F.NO.01(09)/AMENDMENT/REG/CESTAT/2014], DATED In exercise of the powers conferred by section 129C of the Customs Act, 1962 (52 of 1962) read with Section 35D of the Central Excise Act, 1944 (1 of 1944), section 86 of the Finance Act, 1994, section 9C of the Customs Tariff Act, 1975, and all other enabling provisions, the President of the Customs, Excise and Service Tax Appellate Tribunal hereby orders the following amendments in the Customs, Excise and Service Tax Appellate Tribunal (Procedures ) Rules 1982 with immediate effect. 1. Rule 2(f) shall be read as "Certified copy means the original copy of the order received by the party, or a copy (including a Photostat copy) thereof duly authenticated by the concerned department, or a copy (including a Photostat copy) duly authenticated by the Advocate/Chartered Accountant/Consultant duly authorized by the appellant." 2. Rule 8(2) shall be read as "Every memorandum of appeal, cross-objections, reference applications, stay applications or any other miscellaneous applications shall also be typed neatly in double spacing on the A 4 size paper and the same shall be duly paged, indexed and tagged firmly with each paper book put in a separate folder. SECTION 11C, READ WITH SECTION 3, OF THE CENTRAL EXCISE ACT, RECOVERY OF DUTY OF EXCISE NOT LEVIED OR SHORT-LEVIED AS A RESULT OF GENERAL PRACTICE - EXEMPTION OF WHOLE OF DUTY OF EXCISE ON HEENA POWDER AND PASTE FALLING UNDER CHAPTER 33 OF FIRST SCHEDULE TO CENTRAL EXCISE TARIFF ACT, 1985 NOTIFICATION NO. 11/2017-C.E. (N.T.), DATED Whereas the Central Government is satisfied that according to a practice that was generally prevalent regarding levy of duty of excise (including non-levy thereof) under section 3 of the Central Excise Act, 1944 (1 of 1944), (hereinafter referred to as the said Act), on Heena Powder and Paste falling under Chapter 33 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the said goods), was not being levied according to the said practice, during the period commencing on the 1st day of January, 2007 and ending with the 1st day of March, 2013; 2. Now, therefore, in exercise of the powers conferred by section 11C of the said Act, the Central Government hereby directs that the whole of the duty of excise payable under section 3 of the said Act on the said goods but for the said practice, shall not be required to be paid in respect of the said goods on which the said duty of excise was not levied during the period aforesaid in accordance with the said practice. 6 ca.vvaidya@gmail.com

7 In exercise of the powers conferred by section 37 read with section 32E of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules to amend the Central Excise (Settlement of Cases) Rules, 2007, namely (1) These rules may be called the Central Excise (Settlement of Cases) Amendment Rules, (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Central Excise (Settlement of Cases) Rules, 2007 (hereinafter referred to as the said rules), (i)in rule 2, in clause (b), after the word, letters, brackets and figure, "Form SC (E)-1", the word, letters, brackets and figures "or Form SC (E)-2," shall be inserted; (ii)in rule 3 of the said rules, (a) after sub-rule (1), the following sub-rule shall be inserted, namely: (1A) An application under sub-section (5) of section 32E shall be made in Form SC (E) -2". (b)in sub-rule (3), after the word, letters, brackets and figure, "Form SC (E) -1", the words, letters, brackets and figure "or Form SC (E) -2, as the case may be" shall be inserted. (iii)for rule 4 of the said rules, the following rule shall be substituted namely: 4. Disclosure of information in the application for settlement of cases. The Settlement Commission shall, while calling for a report from the Commissioner of Central Excise under sub- section (3) of section 32F, forward a copy of the application referred to in sub-rule (1) of rule 2, or sub-rule (1A) as the case may be, to the Commissioner of Central Excise along with the annexure and the statements and other documents accompanying such annexure to the application.". CENTRAL EXCISE (ADVANCE RULINGS) AMENDMENT RULES, AMENDMENT IN RULE 2 NOTIFICATION NO.8/2017-C.E. (N.T.), DATED In exercise of the powers conferred by section 37 read with sub-sections (1) and (3) of section 23C and sub-section (7) of section 23D of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules to amend the Central Excise (Advance Rulings) Rules, 2002, namely : 1. (1) These rules may be called the Central Excise (Advance Rulings) Amendment Rules, (2) They shall come into force with effect from the 1st day of April, In the Central Excise (Advance Rulings) Rules, 2002, in rule 2, for clause (b), the following clause shall be substituted, namely: '(b) "Authority" means the Authority for Advance Rulings as defined in clause (e) of section 28E of the Customs Act, 1962 (52 of 1962);'. 7 ca.vvaidya@gmail.com

8 CENTRAL EXCISE TARIFF ACT, CLASSIFICATION OF ARTICLES OF PAPER AND PRINTING INDUSTRY TO ENSURE UNIFORMITY IN PRACTICE OF ASSESSMENT ACROSS COUNTRY CIRCULAR NO.1052/01/2017-CX, DATED Representations have been received from trade associations that consequent upon insertion of Chapter note 14 (w.e.f ) to the Chapter 48 of Central Excise Tariff Act, 1985 disputes have cropped up in respect of classification of railway/bus/other tickets/passes, railway ticket rolls and bus ticket rolls, mark sheets/certificates, OMR Sheets/Answer Books with OMR, Answer booklets, inland letter cards, passbooks, applications forms, paper outer strip seal, Railway receipt (RR) and practical notebook. Also, reports received from field formations suggest that there is divergent practice of assessment of these goods. It is therefore, proposed to clarify the classification of these goods to ensure uniformity in practice of assessment across the country. 2. In this connection, statutory provisions are as under: (a) As per Rule 3 (c) of General Rules for the interpretation of the Schedule, "when goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration". (b) As per Rule 4 of General Rules for interpretation of the Schedule, "goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin". (c) As per Chapter note 10 of Chapter 48, heading 4820 does not cover loose sheets or cards, cut to size, whether or not printed, embossed or perforated. (d) As per Chapter note 12 of chapter 48, except for the goods of heading 4814 or 4821, paper, paperboard, cellulose wadding and articles thereof, printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of goods, fall in Chapter 49. (e) As per Chapter note 14 (inserted on ) paper and paper products of heading nos. 4811, 4816 or 4820 intended to be used for further printing or writing are classifiable in their respective headings even if printing is merely incidental to the primary use of goods. (f) HSN explanatory note (2) to heading excludes educational workbooks, sometimes called writing books, with or without narrative texts, which contain printed textual questions or exercises not incidental to their primary use as workbooks and usually with spaces for completion in manuscript. Further, as per HSN explanatory notes (A) to heading 4901, "...literary works of all kinds, text books (including educational workbooks sometimes called writing books) with or without narrative texts which contain questions or exercises (usually with spaces for completion in manuscript); technical publications...'" are classifiable under this heading. (g) Also, as per HSN explanatory notes to heading printed cards bearing personal greetings, messages or announcements (heading 49.09), and printed forms which require the insertion of certain additional information for completion are excluded from this heading. (h) As per explanatory notes to heading 4907 (F), "Stock, share or bond certificates and similar documents of title are formal documents issued, or for issue, by public or private bodies conferring ownership of, or entitlements to, certain financial interests, goods or benefits named therein. Apart from the certificates mentioned these documents include letters of credit, bills of exchange, travellers cheques, bills of lading, title deeds and dividend coupons. They usually require completion and validation." (i) As per explanatory note to heading 49.11, "Certain printed articles may be intended for completion in manuscript or typescript at the time of use but remain in this heading provided they are essentially printed matter. Thus, printed forms (e.g., magazine subscription forms), 8 ca.vvaidya@gmail.com

9 blank multi-coupon travel (e.g., air, rail and coach) tickets, circulars, letters, identity documents and cards and other articles printed with messages, notices, etc., requiring only the insertion of particulars (e.g. dates and names) are classified in this heading... ". The heading 4911 also includes tickets for admission to places of entertainment (e.g., cinemas, theatres and concerts), tickets for travel by public or private transport and other similar tickets. 3. Hon'ble Apex Court in the case of Holostick India Ltd. v. Commissioner of Central Excise 2004 (2015 (318) E.L.T. 529 (S.C)) has held that holograms would not fall under chapter 39 though they had the self-adhesive property and were primarily goods made of plastic, yet due to the security features of the stickers, the said holograms will be placed under chapter 49. The reason for such a classification was that the security features gave the hologram their essential feature. 4. In the light of above statutory provisions and decision of the Hon'ble Apex Court, classification of the goods ibid was examined and it is clarified as under: (a)railway/bus/other tickets/passes (i) These are loose sheets or cards, cut to size and therefore are not covered under heading 4820 and also the provision of Chapter note 14 is inapplicable in the matter. Printing is not merely incidental to the primary use these goods. Printing alone brings these goods in existence. Explanatory note to heading specifically covers these goods. Therefore, these goods are classifiable under heading (ii) Similarly, railway ticket rolls, bus ticket rolls and like goods, which have cut/identifiable marks for separation of railway tickets/bus tickets there from and tickets are easily identifiable therein, are also classifiable under heading (b) Mark sheets/certificates These are loose sheets, cut to size and therefore are not covered under heading 4820 and also provision of Chapter note 14 is inapplicable in the matter. The printing on these documents gives their essential character and on being issued (after completion and validation) by the appropriate authority they have fiduciary value in excess of the intrinsic value. In view of explanatory notes to heading 4907 (F) they are classifiable under heading (c) OMR sheets Like mark sheets and certificates these are loose sheets cut to size and therefore are not covered under heading 4820 and also provision of Chapter note 14 is inapplicable in the matter. The printing on these documents gives their essential character. In view of explanatory note to heading 4911 they are classifiable under heading (d) Answer books with or without OMR, answer booklets and passbooks These are not loose sheets, cut to size and therefore these are not out of the purview of heading Printing on these goods is merely incidental and such goods are intended to be used for further printing or writing. Answer books with or without OMR and answer booklets are intended for completion in manuscript while passbooks are intended for completion in manuscript or typescript. Provisions of Chapter notes 12 and 14 of Chapter 48 and provisions of Rule 4 of General Interpretative Rules are applicable in the matter and therefore these are classifiable under heading (e) Inland letter cards These are loose sheets or cards, cut to size and therefore are not covered under heading 4820 and also provision of Chapter note 14 is inapplicable in the matter. These Inland letter cards are printed with all particulars and shall not undergo any further printing or writing. They contain personal information like notices, reminders etc. Sometimes these cards require only insertion of particulars like names and addresses. In the situation, where printing on inland letter cards is not merely incidental, goods are classifiable under heading However, plain letter cards are classifiable under heading 4817, which reads as "envelopes, letter cards, plain postcards and correspondence cards, of paper or paper boards... " 9 ca.vvaidya@gmail.com

10 (f)application forms These are for example bank account opening forms, forms of telecom companies, education institutions, insurance company forms and similar forms printed on specific order of the concerned bank, telephone companies etc. These are loose sheets, cut to size and therefore are not covered under heading 4820 and also provision of Chapter note 14 is inapplicable in the matter. Printing on these forms is not merely incidental. In view of explanatory note to headings 4901 and 4911 these forms are classifiable under heading (g)paper outer strip seals These strips are used to seal EVMs (electronic voting machines) and are used by the election commission. For example State Election Commission, Haryana is printed on these strip seals. These are basically stickers having a self-adhesive feature where printing brings the product into existence. They have security features like guilloche patterns and anti-photocopy features. Therefore in view of printing not merely incidental and decision of Hon'ble Apex Court in the matter of Holostick India Ltd ibid, these strip seals are classifiable under heading (h)railway Receipts (RRs) These are continuous computer stationery (4820) and also a document of title (4907). They have security numbering with special features like specific and patterns digit size printed by mechanical boxes using penetrating inks and also hatching of Indian Railway logo in the background. Printing on these receipts is not merely incidental. In view of Rule 3 (c) of General Rule for the interpretation of the Schedule, Hon'ble Apex Court decision in the case of Holostick India Ltd ibid and explanatory notes to heading 4907 (F), these are classifiable under heading (i)practical notebook This notebook contains some texts, questions and spaces for exercises. In view of explanatory notes to heading 4820 and explanatory notes (A) to heading 4901, this is classifiable under heading However, practical notebook which have merely certain questions followed by blank spaces for writing are classifiable under heading 4820 only 10 ca.vvaidya@gmail.com

11 SECTION 5A OF THE CENTRAL EXCISE ACT, EXEMPTION TO DUTY OF EXCISE - POWER TO GRANT - EXEMPTION TO ALL ITEMS OF MACHINERY, INCLUDING INSTRUMENTS, APPARATUS AND APPLIANCES, TRANSMISSION EQUIPMENT AND AUXILIARY EQUIPMENT AND COMPONENTS REQUIRED FOR INITIAL SETTING UP OF FUEL CELL BASED SYSTEM FOR GENERATION OF POWER OR FOR DEMONSTRATION PURPOSES OR BALANCE OF SYSTEMS OPERATING ON BIO-GAS OR BIO-METHANE OR BY-PRODUCT HYDROGEN NOTIFICATION NO.5/2017-C.E., DATED In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all items of machinery, including instruments, apparatus and appliances, transmission equipment and auxiliary equipment (including those required for testing and quality control) and components, required for, (a)initial setting up of fuel cell based system for generation of power or for demonstration purposes; or (b)balance of systems operating on bio-gas or bio-methane or by-product hydrogen, so much of the duty of excise leviable thereon which is specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), as is in excess of 6% ad valorem, subject to the following conditions, namely: (1)before the clearance of the items from the factory, the manufacturer produces to the Deputy Commissioner of Excise or the Assistant Commissioner of Central Excise, as the case may be, a certificate from an officer not below the rank of a Deputy Secretary to the Government of India in the Ministry of New and Renewable Energy recommending the grant of this exemption and the said officer certifies that the items are required for, (a)initial setting up of fuel cell based system for generation of power or for demonstration purposes; or (b)balance of systems operating on bio-gas or bio-methane or by-product hydrogen; (2)the manufacturer furnishes an undertaking to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction to the effect that the said items shall be used for the purposes as specified above and, if the manufacturer fails to fulfil this condition, he shall pay the duty which would have been leviable at the time of clearance of items, but for this exemption. SECTION 11C, READ WITH SECTION 3 OF THE CENTRAL EXCISE ACT, RECOVER DUTY OF EXCISE NOT LEVIED OR SHORT-LEVIED AS A RESULT OF GENERAL PRACTICE - POWER NOT TO - DUTY OF EXCISE PAYABLE UNDER SECTION 3 OF SAID ACT ON PLAIN (UN- MODIFIED) TAMARIND KERNEL POWDER FALLING UNDER HEADING 1302 NOT REQUIRED TO BE PAID IN ACCORDANCE WITH SAID PRACTICE NOTIFICATION NO.1/2017-C.E. (N.T.), DATED Whereas the Central Government is satisfied that according to a practice that was generally prevalent regarding levy of duty of excise (including non-levy thereof) under section 3 of the Central Excise Act, 1944 (1 of 1944), (hereinafter referred to as the said Act), on Plain (Un-modified) Tamarind Kernel Powder falling under heading 1302 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the said goods), was not being levied according to the said practice, during the period commencing on the 19th day of July, 2011 and ending with the 18th day of July, 2016; 2. Now, therefore, in exercise of the powers conferred by section 11C of the said Act, the Central Government hereby directs that the whole of the duty of excise payable under section 3 of the said Act on the said goods but for the said practice, shall not be required to be paid in respect of the said goods on which the said duty of excise was not levied during the period aforesaid in accordance with the said practice ca.vvaidya@gmail.com

12 CENTRAL EXCISE ACT, CLARIFICATION OF SAREE UNDER CETA, 1985 CIRCULAR NO.1054/03/2017-CX, DATED 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, 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 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' ca.vvaidya@gmail.com