NO

Problem 1: 

(VAR v_NonEmpty:S X:S Y:S Z:S)
(RULES
from(X:S) -> cons(X:S)
sel(0,cons(X:S)) -> X:S
sel(s(X:S),cons(Y:S)) -> sel(X:S,Z:S)
)

Problem 1: 

Extra Variables Processor:
-> Rules:
 from(X:S) -> cons(X:S)
 sel(0,cons(X:S)) -> X:S
 sel(s(X:S),cons(Y:S)) -> sel(X:S,Z:S)
-> The system has extra variables.

The problem is infinite.