Retrospective CENVAT credit reversal claim upheld on remand, as verification of statutory compliance was still required.

Retrospective changes under section 73 of the Finance Act, 2010 governing reversal of CENVAT credit justified the Tribunal's remand for verification of the assessee's claim and supporting documents. The Tribunal treated the assessee's letter as a request for regularisation, but the record did not clearly establish compliance with the statutory conditions for the claimed reversal. The Bombay High Court held that the Tribunal was entitled to direct the Commissioner to examine whether the assessee qualified for the retrospective benefit, and the plea of functus officio did not prevent that verification. The remand was upheld and no substantial question of law arose.

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Issues: Whether the Tribunal erred in remanding the matter to the Commissioner for verification of the assessee's letter and claimed reversal of CENVAT credit, and whether such remand gave rise to any substantial question of law.

Analysis: The appeal arose from a Tribunal order of remand passed in the light of retrospective changes brought in by section 73 of the Finance Act, 2010, which altered the regime governing reversal of credit under the CENVAT scheme. The assessee's letter of 4 November 2010 was treated by the Tribunal as a request for regularisation, but the materials did not clearly establish whether the statutory conditions had been fulfilled. On that basis, the Tribunal directed the Commissioner to examine whether the claimed reversal and supporting documents entitled the assessee to the benefit of the retrospective provision. The Court held that, on these facts, the Tribunal was justified in asking the department to verify the claim and that the plea of functus officio did not displace the need for such examination.

Conclusion: The remand order was upheld and no substantial question of law arose; the appeal failed.

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