Title: CBIC Establishes Four Interim Boards to Resolve Customs and Excise Disputes Following CECSC Abolition

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The Central Board of Indirect Taxes and Customs (CBIC) has taken a pivotal step in streamlining dispute resolution by constituting four interim settlement boards across India, following the abolition of the Customs Central Excise Settlement Commission (CECSC) effective April 1, 2025. This strategic move aims to expedite the resolution of pending customs and central excise disputes and provide taxpayers with a swift and efficient redressal mechanism.

Background: Abolition of the CECSC and Need for Interim Boards

The CECSC was originally set up to provide taxpayers an alternative dispute resolution forum, enabling them to settle dues related to customs and central excise without undergoing protracted litigation. It encouraged voluntary compliance by giving defaulters a chance to clear dues with reduced penalties.

However, as outlined in the Finance Bill FAQs of 2025, the CECSC had become redundant due to robust provisions already embedded in customs law, including compounding offences and graded penalties. These measures reduced the necessity of a separate settlement commission. Accordingly, the CECSC ceased operations on April 1, 2025, with pending matters requiring appropriate resolution pathways[1][3][4].

CBIC’s Initiative: Setting Up Four Interim Boards

In light of CECSC’s abolition, the CBIC has established four interim boards located in the country’s key metropolitan centers:

• Delhi
• Chennai
• Mumbai
• Kolkata

These interim boards have been constituted under Notification No. 02/2025-Central Excise (N.T.) dated April 8, 2025, empowered by Section 31A(1) of the Central Excise Act, 1944. Their mandate is to handle all pending customs and excise cases earlier admitted by the CECSC but left unresolved due to its closure[1][2][5].

Objectives of Interim Boards

• Expedite the resolution of longstanding customs and excise disputes
• Provide a transparent, fair, and faster mechanism for taxpayers to settle dues
• Reduce the litigation burden on courts and tax authorities
• Enhance compliance certainty and taxpayer confidence
• Operate temporarily until a permanent dispute resolution framework is finalized[1][3]

How Interim Boards Will Function

• Jurisdiction: Cases will be allocated to the respective interim board based on the taxpayer’s regional jurisdiction among Delhi, Chennai, Mumbai, and Kolkata.
• Case Handling: The boards will continue hearing and deciding on pending applications filed before the CECSC till March 31, 2025.
• Procedural Guidelines: CBIC will release detailed guidelines to ensure smooth operations, transparency, and adherence to statutory procedures.
• Temporary Nature: These boards are an interim measure, expected to function until a comprehensive, permanent dispute settlement mechanism is introduced[2][5].

Impact on Taxpayers and the Industry

The interim boards are expected to significantly reduce the backlog of unresolved disputes, ensuring timely settlement of dues and enabling taxpayers to focus on business operations rather than prolonged litigation. This initiative reflects the government’s commitment to ease of doing business and enhancing the tax administration framework.

Benefits for Taxpayers

• Quicker resolution of pending customs and central excise disputes
• Reduced legal costs and procedural complexities
• Clarity on disputed tax liabilities and penalties
• Encouragement to voluntarily settle dues without fear of extended investigations or prosecutions

Advantages for the Government and Industry

• Streamlined tax dispute management
• Lowered litigation and judicial load
• Boost in indirect tax compliance
• Improved industry confidence through transparent dispute mechanisms

Keywords to Note for SEO Optimization

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• Taxpayer dispute settlement mechanism
• Customs law compounding offences
• Graded penalties customs excise
• CBIC dispute resolution framework

What Lies Ahead: Towards a Permanent Framework

While the interim boards address immediate needs, CBIC is working towards creating a long-term, robust dispute resolution framework incorporating modern best practices. This future system aims to integrate digital processes, increase transparency, and provide more taxpayer-friendly options for settlement of customs and excise cases.

In summary, the establishment of these four interim boards by the CBIC marks a major milestone in resolving legacy customs and excise disputes post the CECSC abolition. It provides an effective bridge ensuring administrative continuity, reducing litigation, and supporting taxpayer compliance until a permanent framework is launched.

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By setting up these interim boards in Delhi, Chennai, Mumbai, and Kolkata, the CBIC is reinforcing its commitment to a taxpayer-centric, efficient, and transparent customs and excise administration in India. This progressive reform highlights the government’s proactive approach to simplifying indirect tax dispute resolution, further strengthening the country’s overall ease of doing business landscape.

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This article covers the recent strategic developments by the CBIC in the customs and excise domain, highlighting how the interim boards will function and impact taxpayers and the industry.