( 1 ) THE short point which arises for determination in these civil appeals filed by the assessee is - Whether the assessee was entitled to 20% trade discount.

( 2 ) M/s. Elgi Equipments Ltd. , having registered office at Coimbatore, have four factories located at four different places. They manufacture compressors, pumps, service station equipments etc. M/s. Elgi Equipments ltd. (assessees) claimed trade discounts varying from 10% to 45% on different products. They declared that such discount was a part of their "sales Pattern". During the course of assessment, the Department noticed certain price discrepancies. Therefore, an enquiry was made; statements of Directors were recorded and, on that basis, a show cause notice was given to the assessee claiming differential amount of duty of Rs. 40 lakhs. The assessee was also asked by the show cause notice as to why a penalty of rs. 10 lakhs shduld not be imposed.

( 3 ) IN these appeals, we are concerned with the period January, 1991 to April, 1992. The main case of the Department was that the appellant-assessee did not possess uniform sales pattern; that they gave different discounts to Area Distributors and dealers to whom goods wer