JUDGMENT

SAWANT, J.:—The question involved in the present appeal is of the interpretation of Circular letter dated 19th June, 1982 issued by the Fertilizer Industry Co-ordination Committee, Government of India (Department of Chemicals & Fertilizers) (FICC) to all manufacturers of Single Super Phosphate. Did the circular letter represent to the manufacturers that they would be paid differential rate of subsidy based on the actual ex factory price of each of the manufacturing units or did it inform them that the subsidy would be based on the ex factory price of each of the units which would be worked out by the FICC? To appreciate the controversy, it is necessary to have a glimpse of the relevant facts.

Single Super Phosphate, (SSP) is a low nutrient phosphatic fertilizer. Its two major ingredients are Rock Phosphate and Sulphur. The consumption norms of the two items for manufacturing one metric tonne of SSP are 0.57 M.T. of Rock Phosphate and 0. 125 M.T. of Sulphur.

SSP was brought under Retention Price Control w.e.f 23rd May, 1982. There are a number of units manufacturing SSP in the small and medium sectors.

In order to boost up the consumption of phosphatic fertilizer, FICC had in