Commissioner of Central Excise, MumbaiI Respondent 115, New Central Excise Building, M.K. Road, Churchgate, Mumbai 400 020. AND Excise Appeal No. 85045 of 2013 (Arising out of OrderinAppeal No. BR/328329/MI/2012 dated 25.09.2012 passed by the Commissioner of Central Excise (Appeals), Mumbai ZoneI) Govind Rammurthy Appellant Managing Director of Microworld Software Services Pvt. Ltd., Plot No.80, Road No.15, MIDC, Marol, Andheri (E), Mumbai 400 093. Vs. Commissioner of Central Excise, MumbaiI Respondent 115, New Central Excise Building, M.K. Road, Churchgate, Mumbai 400 020. Appearance: Shri Rajesh Ostwal with Shri Saurabh Bhise, Advocates, for the Appellant Shri Amrendra Kumar Jha, Deputy Commissioner, Authorised Representative for the Respondent HON'BLE MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL) HON'BLE DR. SUVENDU KUMAR PATI, MEMBER (JUDICIAL) Date of Hearing: 15.02.2023 Date of Decision: 15.02.2023 FINAL ORDER NO. 8575285753/2023 PER: SANJIV SRIVASTAVA These appeals are directed against the order in appeal No BR/328329/MI/2012 dated 25.09.2012/28.09.2012 of the 2 E/85044,85045/2013 Commissioner (Appeals) Central Excise, Mumbai I. By the impugned order following has been held: "I uphold the impugned order with modification that since the appellant No 1 had already paid Rs 9,09,647/, the same is appropriated against the confirmed demand. Both the appeals are rejected." 1.2 Original Authority has by his order held as follows: "ORDER 69. In view of the above discussion and findings, I pass, the following order. After allowing the benefit of Cum duty price, I confirm the demand of Central Excise Duty amounting to Rs.35,40,853/ (Rupees Thirty Five Lakhs Forty Thousand Eight Hundred Fifty Three only), Education Cess amounting to Rs.70,817/ (Rupees Seventy Thousand Eight Hundred Seventeen), and Higher Secondary Education Cess amounting to Rs.26.915/ (Rupees Twenty Six Thousand Nine Hundred Fifteen only) payable by them being Central Excise Duty, not paid on goods, as detailed in Annexure 'A' to the Show Cause Cum Demand Notice, the packaged software, internet download sales, as classifiable under tariff item 8524 31 11 (as amended) manufactured and cleared by them during the period April 2006 to November, 2008, under proviso to Section 11 A (1) of Central Excise Act, 1944, and order for recovery of the amount from M/s. Microworld Software Services Pvt. Ltd., Mumbai 400 093. I confirm and order recovery of interest at appropriate rate, from M/s. Microworld Software Services Pvt. Ltd., Mumbai 400 093, under Section 11 AB of Central Excise Act 1944. I impose penalty of Rs.36,38,585/ (Rupees Thirty Six Lakhs Thirty Eight Thousand Five Hundred Eighty Five only) on M/s. Microworld Software Services Pvt. Ltd., Mumbai 400 093, under provisions of Section 11 AC of the Central Excise Act 1944. Further, I impose a penalty of Rs.1,00,000/ (Rupees_One lakh only) on Shri Govind Rammurthy, Managing Director of M/s. Microworld Software Services Pvt. Ltd., Mumbai 93, under Rule 26 of the Central Excise Rules2002." 3 E/85044,85045/2013 2.1 The appellants are engaged in the manufacture and sale of packaged information technology software on media like CD ROM or Disc. Till 1.3.2006, information technology software recorded on media was exempted from Central Excise duty. With effect from 1.3.2006, such information technology software recorded on CDROM or disc or any other media was classifiable under Tariff Item 8524 91 12 of the First Schedule to the Central Excise Tariff Act, 1985 (Central Excise Tariff for short) and basic excise duty @ 8% adv. was levied. With effect from 01.01.2007, the aforesaid Tariff Item No. was changed to 8523 80 20 which covered information technology software recorded on any media and attracted central excise duty @ 8% adv. 2.2 Appellants paid Central excise duty at applicable rate on packaged software sold in CDROM or disc after availing small scale exemp