The appellate authority may amend the contested ruling in favour of a party.
It may amend the contested ruling to the prejudice of a party, provided the ruling violates federal law or is based on an incorrect or incomplete determination of the facts of the case; the contested ruling may not be amended to the prejudice of a party on the grounds that it is inadequate, other than in the case of an amendment in favour of a respondent.
If the appellate authority intends to amend the contested ruling to the prejudice of a party, it shall notify the party of this intention and allow him the opportunity to respond.
In no event do the grounds for the application bind the appellate authority.