Appellate power to enhance a penalty does not include restoring a penalty already set aside by the first appellate authority.

Under section 36(3)(a)(i) of the Tamil Nadu General Sales Tax Act, 1959, the Tribunal's appellate powers to confirm, reduce, enhance or annul an assessment or penalty do not include an independent power to restore a penalty already set aside by the first appellate authority. Enhancement applies only where a penalty still subsists and can be increased; it does not authorise revival of a cancelled penalty. As the State sought only restoration of the annulled penalty, the request fell outside the statutory scope of the Tribunal's jurisdiction. The revision therefore failed.

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Issues: Whether the Appellate Tribunal had jurisdiction under section 36(3)(a) of the Tamil Nadu General Sales Tax Act, 1959 to restore a penalty that had been set aside by the Appellate Assistant Commissioner.

Analysis: The appellate power under section 36(3)(a)(i) permits the Tribunal to confirm, reduce, enhance or annul an assessment or penalty, but those expressions do not include an independent power to restore a penalty once it has been cancelled by the appellate authority. Enhancement presupposes an existing penalty capable of being increased, whereas restoration seeks revival of a penalty that no longer survives after being set aside. Since the State's request was only for restoration of the cancelled penalty, it fell outside the statutory scope of the Tribunal's appellate powers.

Conclusion: The Tribunal had no jurisdiction to restore the penalty, and the revision seeking that relief failed.

Final Conclusion: The statutory scheme confined the Tribunal to the powers expressly given in appeal and did not permit revival of a penalty annulled by the first appellate authority.

Ratio Decidendi: A power to enhance a penalty does not include a power to restore a penalty already set aside by the appellate authority.

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