FinMin Amends Rules Governing Customs & Excise Settlement Commission; Existing Officers to Vacate Posts with Compensation

The Ministry of Finance has notified amendments to the rules governing the Customs and Central Excise Settlement Commission, mandating that all existing members, including the Chairman and Vice-Chairmen, vacate their positions effective from a date to be specified by the Central Government.

The changes will retrospectively apply from April 1, 2025, and modify Rule 7 of the Customs and Central Excise Settlement Commission (Recruitment and Conditions of Service of Chairman, Vice-Chairmen and Members) Rules, 2015.

The new proviso states that any person holding the office of Chairman, Vice-Chairman, or Member immediately before the notified date shall cease to hold that position from such date.

Those affected by the premature termination of their tenure will be entitled to a compensation not exceeding three months’ pay and allowances.

The amendment has been given retrospective effect from April 1, 2025, as authorized under Section 106 of the Finance Act, 2025.

No Adverse Impact on Any Individual, Government Says

An Explanatory Memorandum included in the notification certifies that the amendment will not adversely affect the interests of any individual, likely aiming to pre-empt legal challenges from outgoing officials.

Notification Details

Date: 31st July, 2025

Read More: ITC Is Not Eligible On CESS Towards Supply Of Electricity To BLACO’s Township: Chhattisgarh High Court

Mariya Paliwala
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