Question 10 - Whether in an appeal the FAA can pass an order enhancing the quantum ofduty/fine/penalty/reduce the amount of refund/ITC from the one passed by the original authority?
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 16 Appeals, Review and Revision in GST
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Enhancement of penalty requires opportunity to show cause; enhancement of duty or denial of ITC requires specific SCN and time compliance. The appellate authority may enhance fees or penalties or reduce refunds or input tax credit only after giving the appellant a reasonable opportunity to show cause; where enhancement of duty or denial of ITC is proposed, a specific show cause notice must be issued and the order must be passed within the statutory time limit.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Enhancement of penalty requires opportunity to show cause; enhancement of duty or denial of ITC requires specific SCN and time compliance.
The appellate authority may enhance fees or penalties or reduce refunds or input tax credit only after giving the appellant a reasonable opportunity to show cause; where enhancement of duty or denial of ITC is proposed, a specific show cause notice must be issued and the order must be passed within the statutory time limit.
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