An amendment to the Customs and Central Excise Settlement Commission (Recruitment and Conditions of Service of Chairman, Vice-Chairmen and Members) Rules, 2015, was recently enacted by the Ministry of Finance, effective April 1, 2025. This notification, G.S.R. 516(E), introduces a new proviso into rule 7 of the existing rules. This new provision stipulates that any individual holding the position of Chairman, Vice-Chairman, or Member of the commission immediately before a date to be specified by the Central Government will be removed from their office on that date. These individuals will be eligible to receive compensation for the premature termination of their term, with the amount not to exceed three months’ pay and allowances. The amendment is being applied retroactively from April 1, 2025, to align with the changes proposed by Section 106 of the Finance Act, 2025. The Ministry of Finance has certified that this retrospective application will not have an adverse effect on any person’s interests.
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 31st July, 2025
G.S.R. 516(E).—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.”.
[F. No. Q-22016/3/2021-AAR]
BALASUBRAMANIAN KRISHNAMURTHY, Jt. Secy.
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 30th March, 2015 vide notification number G.S.R. 236(E), dated the 27th March, 2015 and were last amended vide notification number G.S.R. 829 (E), dated the 23 August, 2016.
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.
