Appellate remand power withdrawn after amendment, with disputed credit sent back to the original authority for fresh adjudication.

After the amendment to Section 35A, the Commissioner (Appeals) lacked power to remand the dispute on credit admissibility. Where factual verification of the impugned inputs was still required and no conclusive finding had been recorded on entitlement, the proper course was to set aside the remand and restore the matter to the original authority for fresh adjudication. The original authority was directed to reconsider the credit claim after giving the assessee reasonable opportunity of hearing.

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Issues: Whether, after the amendment to Section 35A, the Commissioner (Appeals) had power to remand the dispute relating to admissibility of credit on the impugned inputs, and whether the matter should be sent back to the original authority for fresh consideration.

Analysis: The dispute concerned credit eligibility on certain inputs used in relation to manufacture and maintenance activities. The appellate authority had not recorded a conclusive factual finding on the credit entitlement and had sent the matter for factual verification. The Tribunal noted that, after the amendment to Section 35A, the Commissioner (Appeals) lacked power to remand. Since verification of the disputed credit required examination of relevant details and involvement of the original authority, the proper course was to restore the matter to the original authority for fresh adjudication with notice to the assessee.

Conclusion: The Commissioner (Appeals) could not remand the matter. The order of remand passed by the Commissioner (Appeals) was set aside and the dispute was remitted to the original authority for fresh consideration after granting reasonable opportunity of hearing.

Final Conclusion: The department succeeded on the remand issue, and the credit dispute was restored for fresh decision by the original authority.

Ratio Decidendi: After the statutory amendment withdrawing remand power, an appellate authority cannot remand a matter and, where factual verification is necessary, the dispute may be sent back to the original authority for fresh adjudication with due hearing.

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