Question 9 - Whether in an appeal the AA can pass an order enhancing the quantum of duty/ fine/ penalty/ reduce the amount of refund/ITC from the one passed by the original authority?

Enhancement of penalties and reductions of refunds allowed on appeal if reasonable opportunity and statutory notice and time limits observed.

The appellate authority may enhance fees, penalties or reduce refunds or input tax credit only after giving the appellant a reasonable opportunity of showing cause; for enhancement of duty or findings on wrongful availment of input tax credit, a specific show cause notice is required and the order must be passed within the statutory time limits applicable to assessment or adjudication.