C.HARI SHANKAR, J. - (1.) These proceedings emanate from a Show Cause Notice, dated 16th January, 2013, issued by the Directorate General of Central Excise Intelligence (Petitioner No. 2 herein and referred to, hereinafter, as " the DGCEI " -) to the respondents, whereby it was alleged that Respondents No.1 and 2 (M/s. Amit Decorative Plywoods Pvt Ltd and M/s Amit Densified Doors Pvt Ltd) had indulged in clandestine removal and undervaluation of goods manufactured by them. The Show Cause Notice required the respondents to show cause as to why (i) Central Excise duty (hereinafter referred to as " duty " -), of 11,43,09,554/-, evaded on goods cleared clandestinely, either without payment of duty or on short payment of duty, during the period 1st April, 2010 to 15th July, 2012, be not demanded and recovered, under Section 11A(4) of the Central Excise Act, 1944 (hereinafter referred to as " the Act " -), (ii) interest, on the said amount, be not demanded from them under Section 11AA of the Act, (iii) penalty be not imposed on them under Section 11AC of the Act and Rule 25 of the Central Excise Rules, 2002 (hereinafter referred to as " the Rules " -), (iv) redemption fine, in lieu of confiscation of the excisable goods, clandestinely removed by Respondents No.1 and 2, during the period 1st April, 2010 to 15th July, 2012, valued at 107,56,15,784/-, be not imposed under Section 34 of the Act, as the goods themselves were not available for confiscation, (v) the amount of 70,00,000/-, deposited by Respondents No.1 and 2 be not appropriated towards the aforesaid duty liability, (vi) duty of 10,32,559/- be not demanded, and recovered, from Respondents No.1 and 2 , under Section 11A of the Act, on the goods found short in the factory premises of Respondent No.1, which appeared to have been clandestinely removed, (vii) duty of 26,86,992/-, on goods allegedly clandestinely removed by Respondents No.1 and 2 and seized from the godown, be not demanded from them under Section 11A of the Act, (viii) the goods, valued at 2,17,39,417/-, allegedly manufactured and clandestinely removed by Respondents No.1 and 2 , and seized from the godown on 19th July, 2012, be not confiscated under Rule 25 of the Rules, (ix) excisable goods, valued at 21,09,928/-, seized from the premises of Respondent No.1, be not confiscated under Rule 25 of the Rules, as they appeared to have been stored for the purpose of clandestine clearance without payment of duty, and redemption fine be not charged thereon, as the said goods had already been provisionally released to Respondent No.1, and (x) cash of 58,50,000/-, seized at the residence of the directors of Respondents No.1 and 2, and cash of 10,70,000/-, seized from the office premises of the said respondents, be not confiscated under Section 121 of the Customs Act, 1962, as made applicable to Central Excise by virtue of Notification 68/63-CE dated 4th May, 1963, as the said amount appeared to represent sale proceeds of plywood, clandestinely removed from the factories of Respondents No.1 and 2 .
(2.) Additionally, the Show Cause Notice required the remaining respondents to show cause against imposition of penalty, under the Rules, for having aided and abetted Respondents No. 1 and 2 in the aforesaid contraventions.
(3.) Instead of proceeding to adjudication of the aforesaid Show Cause Notice, the petitioners chose to have the matter settled, by moving the Customs, Central Excise and Service Tax Settlement Commission (hereinafter referred to as " the Settlement Commission " -), under Section 32E of the Act. Vide Final Order dated 2nd September, 2014, the Settlement Commission settled the case, on condition of payment of duty, by Respondents No. 1 and 2, of 1,56,11,930/-, along with interest of 44,17,956/-, and penalties of (i) 5 lakhs each by Respondents No. 1 and 2, (ii) 2 lakhs by Respondent No. 3, (iii) 1 lakh each by Respondents No. 5, 6 and 13, (iv) 50,000/- each by Respondents No. 4, 7, 8, 9, 10, 11, 12 and 16, and (v) 20,000/-, each, by Respondents No.14, 15 and 17. Additionally, the Settlement Commission has given Respondents No.1 and 2 the option to redeem the seized goods, on payment of redemption fine of 5,00,000/-. ;