ORDER

% 22.05.2024

1. The Petitioner has approached this Court challenging the Office Memorandum dated 18.01.2024 issued by the Ministry of Chemicals and Fertilizers, Department of Fertilizers. The salient features of the said Office Memorandum reads as under:-

“3. The salient features/provisions of the guidelines are as below: -

i. These guidelines will be effective from 01.04.2023 onwards.

ii. GST will be excluded from evaluation of reasonableness of MRPs.

iii. Differential Profit percentage will be allowed for P&K Fertilizer Companies based on the category to which they belong i.e. 8% for Importers, 10% for Manufacturers and 12% for Integrated Manufacturers.

(detailed formula of calculation along with details of categorization are at Annexure-A) iv. The basis of evaluation of reasonableness of MRPs will be the Total Cost of Sales i.e. is the Cost of Production/Import (except profit on self- manufactured intermediates for manufacturing finished fertilizers), Administrative Overheads, Selling and Distribution Overheads (except promotional expenses), Net Interest and Financing charges.

v. The Total Cost of Sales will not include the following: (a) any interest beyond the