Retrospective CENVAT amendment bars further demand where attributable credit was already discharged under the amended framework.

Retrospective amendment under the Finance Act, 2010 governed CENVAT credit relating to plastic crates used for clearing both dutiable and exempted goods. The assessee's application under the amended provision had already been accepted by the jurisdictional Commissioner, and departmental verification showed that the credit attributable to exempted goods was lower than the credit not taken by the assessee. The methodology used to work out the attributable credit was accepted as reasonable, so the demand for reversal or further payment could not be sustained. On that basis, no additional amount was payable.

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Issues: Whether the demand of CENVAT credit attributable to plastic crates used for clearing both dutiable and exempted goods survived after the retrospective amendment and whether any further amount was payable by the assessee.

Analysis: The dispute concerned credit taken on crates used in relation to both categories of goods. The retrospective amendment in the Finance Act, 2010 was held to cover the relevant period, and the assessee's application under the amended provision had already been accepted by the jurisdictional Commissioner. On the facts verified by the department, the credit attributable to exempted goods was found to be lower than the credit not taken by the assessee, and the methodology adopted for working out the attributable credit was accepted as reasonable.

Conclusion: The demand did not survive and no further payment was due from the assessee.

Ratio Decidendi: Where a retrospective amendment governs the dispute and the attributable credit has already been discharged within the amended framework, no further demand can be sustained.

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