Mandatory penalty and interest on confirmed duty cannot be waived when the statute leaves no discretion.

The Tribunal could not set aside the statutory consequences merely because a similar matter was pending before the Supreme Court, since the binding effect of the Supreme Court's ruling in connected matters had removed the basis for reducing those consequences. Once the duty demand stood confirmed, the statute required mandatory imposition of interest and penalty, leaving no discretion to reduce or waive them. The reduction of interest and penalty was therefore inconsistent with the statutory mandate and bad in law. The departmental appeal succeeded, and the order reducing the statutory consequences was set aside.

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Issues: (i) Whether the Tribunal was justified in setting aside the order despite the pendency of a similar decision before the Supreme Court. (ii) Whether the Tribunal was justified in setting aside the demand of interest and penalty when the statute prescribed mandatory imposition upon confirmation of duty.

Issue (i): Whether the Tribunal was justified in setting aside the order despite the pendency of a similar decision before the Supreme Court.

Analysis: The binding effect of the Supreme Court's ruling in the connected matters removed the basis on which the Tribunal had reduced the statutory consequences flowing from the confirmed duty demand.

Conclusion: The Tribunal was not justified in setting aside the order on that ground.

Issue (ii): Whether the Tribunal was justified in setting aside the demand of interest and penalty when the statute prescribed mandatory imposition upon confirmation of duty.

Analysis: Once the duty demand stood confirmed, the statutory scheme left no discretion with the authorities in the matter of penalty, and the reduction of interest and penalty was inconsistent with that mandate.

Conclusion: The Tribunal was not justified in setting aside the demand of interest and penalty, and the reduction was bad in law.

Final Conclusion: The departmental appeal succeeded and the order reducing the statutory consequences was set aside.

Ratio Decidendi: Where the statute mandates penalty upon confirmation of duty, the authorities have no discretion to reduce or waive the penalty and allied statutory consequences.

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