<h1>Bombay High Court: No Discretion to Waive Penalties u/s 11C for Duty Evasion; Interest u/s 11B Mandatory.</h1> The Bombay High Court ruled that the department lacks discretion to waive mandatory penalties under Section 11C if conditions like duty evasion through fraud or collusion are met. However, if such conditions are absent and the duty is paid before a show cause notice is issued, no penalty will be imposed. Conversely, interest under Section 11B is mandatory and cannot be waived.