1. Appeal has been filed against Order-in-Original No. MIJM/ACE/01/2011, dated 12.01.2011 in terms of which:--
"(i) The declared prices of the Oracle packaged software imported under Bills of Entry filed by Oracle India Pvt. Ltd. (OIPL) and the subject matter of the Show Cause Notice dated 02.06.2009 were rejected under Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
(ii) Demand amounting to Rs. 6,82,82,628/- for the period January & February, 2006 was dropped.
(iii) It was held that the rate of duty from 01.03.2006 to 28.02.2007 was @ 8.16% and not 8.24% and consequently the differential demand on account of higher rate of duty amounting to Rs. 52,05,030/- was also dropped.
(iv) Forty nine consignments seized vide panchnama dated 15.01.2006 at NCT, IGI Airport Complex, New Delhi valued at Rs. 17,78,90,832/- (Rs. 17,21,44,516 + Rs. 57,46,316/-) were confiscated under Section 111(m) of the Customs Act, 1962 for mis-declaration of value and allowed to be redeemed on payment of redemption fine of Rs. 17,78,90,832/-. The bond and bank guarantee filed for release thereof were ordered to be appropriated for that purpose.
(v) Differential customs duty amounting to Rs. 88,05,384/- (Rs. 79,43,437 + Rs. 8,61,947) was ordered to be recovered on account of licence fee paid/payable to M/s. Oracle Corporation on the confiscated goods.
(vi) Under Section 28 ibid, customs duty amounting to Rs. 1,27,35,26,395/-, out of the total demand of Rs. 1,34,70,14,053/- on the clearance of goods made during the period March, 2006 to December, 2007 was ordered to be recovered. All such goods cleared involving the said evasion were confiscated for mis-declaration of value under Section 111(m) ibid and as the goods were not available having already been released a fine of Rs. 1,27,35,26,395/- in lieu of confiscation was imposed.
(vii) Interest at the applicable rate was ordered to be recovered under Section 28AB ibid.
(viii) Penalty of Rs. 1,28,23,31,779/- under Sections 112 and 114AA ibid was imposed on Oracle India Pvt. Ltd. (OIPL).
(ix) Penalty of Rs. 10 lakhs each was imposed upon Shri Krishan Dhawan and Shri Atul Kaushik under Section 112 ibid."
2. The facts of the case briefly stated are as under:--