The Ministry of Finance, vide Notification No. G.S.R. 516(E) dated July 31, 2025, has amended the Customs and Central Excise Settlement Commission (Recruitment and Conditions of Service of Chairman, Vice-Chairmen and Members) Rules, 2015. Titled the Amendment Rules, 2025, this change takes retrospective effect from April 1, 2025. The amendment introduces a third proviso to Rule 7, which allows for the premature termination of the tenure of the Chairman, Vice-Chairmen, and Members of the Customs and Central Excise Settlement Commission due to the replacement of the Commission with an Interim Board from April 1, 2025, as proposed under Section 106 of the Finance Act, 2025.
The new proviso stipulates that incumbents holding office immediately before a date to be notified by the Central Government shall cease to hold office from that date. However, they will be eligible to claim compensation for the premature termination, capped at three months’ pay and allowances. An explanatory memorandum clarifies that this retrospective amendment does not adversely affect any individual’s interests, as appropriate compensation provisions are made. This amendment ensures legal backing for administrative restructuring while maintaining fairness to the affected officials.
In exercise of the powers conferred by the proviso to article 309 of the Constitution, the President hereby makes the following rules further to amend the Customs and Central Excise Settlement Commission (Recruitment and Conditions of Service of Chairman, Vice-Chairmen and Members) Rules, 2015, namely: –
1. (1) These rules may be called the Customs and Central Excise Settlement Commission (Recruitment and Conditions of Service of Chairman, Vice-Chairmen and Members) Amendment Rules, 2025.
(2) They shall be deemed to have come into force on the 1st day of April, 2025.
2. In the Customs and Central Excise Settlement Commission (Recruitment and Conditions of Service of Chairman, Vice-Chairmen and Members) Rules, 2015, in rule 7, after the second proviso, the following Proviso shall be inserted, namely: –
“Provided also that any person appointed as Chairman, Vice-Chairman or Member holding office as such immediately before the date to be notified by the Central Government in this behalf, shall on and from such date, cease to hold such office, and they shall be entitled to claim compensation not exceeding three months’ pay and allowances for the premature termination of term of their office.”.
Explanatory Memorandum: The Customs and Central Excise Settlement Commission (Recruitment and Conditions of Service of Chairman, Vice-Chairmen and Members) Amendment Rules, 2025 is being given the retrospective effect from the 1st April, 2025 in pursuance of section 106 of the Finance Act, 2025 proposing to insert a proviso after the second proviso in rule 7 of the Customs and Central Excise Settlement Commission (Recruitment and Conditions of Service of Chairman, Vice-Chairmen and Members) Rules, 2015. Therefore, it is certified that no person interest will be adversely affected by this notification.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/07/MoF-NN-31.07.2025.pdf
