UNION OF INDIA vs SURYA PHOSPHATE LTD.

The Supreme Court held that the Government's Circular dated 19.6.1982 regarding the subsidy for Single Super Phosphate (SSP) did not specify the method for calculating the ex-factory price, which was to be determined by the Fertilizer Industry Coordination Committee (FICC) based on recommendations from a Working Group. The Court found that the High Court's ruling, which required the Government to consider the ex-factory price as claimed by the Respondent-company, was incorrect. The appeal was allowed, affirming that the subsidy calculation was valid as per the new formula adopted by the Government.