The setting is referenced in java class ServiceMappingUtils, you cannot customize in rules layer. What exactly are you trying to accomplish here?

if (ServiceDeploymentUtils.getDynamicSystemSetting("xml/removeEmptyPropertiesFromPage", false)) {
   oLog.debug("Removing empty properties from source page before generating XML stream");
   removeEmptyPropertiesFromPage(refPage);
}

I want to create this DSS in my own ruleset so that this DSS will remove empty properties only from services in that ruleset and not for all services in my application

I see, I don't think that is possible with the current implementation. You brought up a good concept in terms of the scope of DSS. Potential enhancement request.