If the applicant has filed an appeal but no amended claims, the Division should check whether the decision was correct in substance. Interlocutory revision should only be made if the decision was not correct in substance. A refund of the appeal fee is to be ordered if a substantial procedural violation has occurred (see E-X, 7.3). If interlocutory revision is made and new objections arise, the Division should communicate these objections to the applicant as often as necessary to reach a final decision on the file; this could include holding oral proceedings (again) and/or a second refusal.
The applicant points out in the letter of appeal that the Examining Division has overlooked a request for oral proceedings.
The Examining Division looks at the file and notes that this was indeed the case: interlocutory revision must be made, even if it results in a further refusal after oral proceedings have been held. The appeal fee must be refunded.