ORDER

1. These appeals arise from the impugned orders dated 13-9-2005 and 12-5-2010 passed by the Customs, Excise & Service Tax Appellate Tribunal (for short, the 'CESTAT'), West Zonal Bench at Mumbai. By the said orders, the CESTAT has allowed the appeals of the respondents-importers on the ground that the demand of duty is barred by limitation. It also set aside the penalties imposed under Sections 114A and 112(a) on the importers.

2. In brief, the two respondents had used certain Special Import Licences (SILs) of gold bars and silver bars on payment of concessional rate of duty under Notification No. 117/94, dated 27-4-1994. Apparently, the authorities detected during the investigation that the said SILs were forged and fabricated. The authorities therefore issued a show cause notice on 20-4-1999. In the said show cause notice, it was recited that the Joint Director General of Foreign Trade, Kanpur, who was asked to confirm the genuineness of the licences, wrote a letter F.No.VIG.-0254/KAN/JDG/1993/70, dated 26-1-1998 stating that no special import licence had been issued to the importers. Therefore it was averred in the show cause notice that the concessional rate of duty could