Published Friday, 05 September 2014
Thousands attended the five-day festival. (© screengrab)
It follows complaints about remarks by a member of the Co Kildare-based 'rebel band' The Druids during the community festival in north Belfast last month.
The singer was filmed telling British soldiers and their "Orange comrades" to go back "to England".
Officers had previously said the incident had been fully and thoroughly investigated and evidence was presented to the PPS, but no further action was to be taken.
But in a statement on Friday, Chief Superintendent Nigel Grimshaw confirmed: "Police are going through the formal process of submitting the file of evidence previously discussed with the Public Prosecution Service when pre-prosecutorial advice was originally sought."
The development has been welcomed by unionist politicians, who have previously criticised the PPS over its handling of this case.
However the UUP's Tom Elliott said he still has concerns.
"We are not yet convinced that the druids could not be charged under existing Northern Ireland legislation and welcome the police decision to submit a complete file for a formal charging decision by the DPP," a statement from the MLA for Fermanagh and South Tyrone explained.
"To take no action sends a message to homophobes, racists and bigots that it's okay to preach hate in Northern Ireland."
© UTV News