Second appellate tribunal cannot restore unappealed turnover or penalty without invoking statutory enhancement procedure.

A second appellate tribunal under the Tamil Nadu Value Added Tax Act, 2006 cannot restore turnover or penalty relief that the Revenue did not put in issue in its appeal. The Tribunal may deal with matters arising from the appeal, but any enhancement of assessment must follow the statutory enhancement procedure, including a proper petition for enhancement. Because the Revenue challenged only specified turnovers and did not dispute the deleted turnover or penalty, the Tribunal lacked jurisdiction to restore those unappealed portions of the first appellate order. The first appellate authority's order was therefore restored.

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Issues: Whether the Tribunal could restore the assessment of turnover of Rs. 5,25,000/- and the deletion of penalty when the Revenue had not challenged those parts of the first appellate order, and whether such restoration was within the Tribunal's jurisdiction under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The Tribunal functioned as a second appellate authority under Section 58 of the Tamil Nadu Value Added Tax Act, 2006 and could deal with the materials and issues arising from the appeal, but its power to enhance the assessment could be exercised only in the manner contemplated by the statute, including a proper petition for enhancement. The Revenue's memorandum of appeal challenged only the specified turnovers of Rs. 9,40,800/- and Rs. 3,76,435/-, and did not dispute the turnover of Rs. 5,25,000/- or the deletion of penalty under Section 27(3). In the absence of a challenge to those portions of the first appellate order, the Tribunal had no jurisdiction to restore them.

Conclusion: The restoration of the unappealed turnover and penalty was without jurisdiction and was liable to be set aside.

Final Conclusion: The first appellate authority's order was restored and the revision was allowed in favour of the petitioner-dealer.

Ratio Decidendi: A second appellate tribunal cannot enhance or restore parts of an assessment not put in issue by the Revenue's appeal unless the statute's enhancement procedure is duly invoked.

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