GANGES FERTILIZERS AND CHEMICALS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This judgment will dispose of C.W.P.No.3966/95, C.W.P.No.3601/94, C.W.P.No.4365/95 and C.W.P.No.4366/95 as common questions arise for consideration in all these petitions though the petitioners have claimed different amounts as fertilizer subsidy from the respondents.

(2.) The petitioners in each case are alleged to be units manufacturing Single Super Phosphate Fertilisers (SSP). In the manufacturing process, the petitioners utilised rock phosphate and sulphuric acid as the raw material for the manufacture of SSP. Prior to 23rd May, 1982 there was a system of having a flat rate of subsidy for all manufacturing units in the country and thus the amount of subsidy was simply to be deducted from the total price and the advantage of the subsidy was simply passed on to the consumers. With effect from 23rd May, 1982 the flat rate of subsidy system was abolished and it was decided by the respondents to have a uniform price for supply of SSP to the consumers and a scheme was framed for payment of differential rate of subsidy based on ex-factory price worked out separately for each manufacturing unit on normative basis. The scheme was introduced vide circular dated 19th June, 1982 by respondent no.2 and each unit was asked to submit details as per proforma enclosed with the abovestated circular dated 19th June, 1982 which reads as follows:-

(3.) Similarly another circular dated 11th November, 1982 was issued to all manufacturers of SSP giving the details of the scheme for payment of subsidy to the SSP manufacturing units, copy of this circular has also been placed on record. Further facts are stated in paragraphs 9, 10, and II of the writ petition (C.W.P.No-3966/95) which read as follows:-