Waiver of Penalty leviable u/s 11C and Interest U/s 11B is not discretionary

In a Recent Decision reported in 2007 -TMI - 1645 - HIGH COURT, BOMBAY - (Central Excise)  has held that the department does not have power to waive mandatory penalty leviable u/s 11C if the circumstances (i.e. evasion of duty by use of fraud, collusion etc.)  mentioned therein are satisfied.

However, if the circumstances mentioned in section 11C are not existing, and where amount of duty is deposited before issue of show cause notice, no penalty would be levied.

On the other hand, interest mentioned u/s 11B is mandatory and can not be waived.