Centre announces interim boards for Customs Central Excise Settlement Commission

The centre has established four Interim Boards to expedite dispute resolution for pending central excise cases. The move aims to reduce litigation and provide taxpayers with an alternative mechanism to amicably settle customs and excise related matters. The boards are expected to operate temporarily until a permanent dispute resolution framework is finalized.

The four interim boards will be operational in Delhi, Chennai, Mumbai, and Kolkata.

Finance Minister Nirmala Sitharaman had announced in her budget speech that Customs Central Excise Settlement Commission will cease operations on April 1, 2025, and be replaced by the Interim Board for Settlement,which will settle all pending applications that were previously under the purview of the Customs & Central Excise Settlement Commission, filled till March 31, 2025.


This Commission was created to reduce litigation giving taxpayers a chance to settle their dues without lengthy litigations and to encourage those who may have evaded duty payments to come up clean.

However the frequently asked questions (FAQs) accompanying the Finance Bill, 2025 said that due to the existing provisions for compounding offences and graded penalties under Customs law, the Settlement Commission grew redundant.