TMI Blog1993 (5) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents. Before adverting to these issues we consider it necessary to mention that the payment of subsidy to manufacturers of fertilisers was introduced in 1982 under a scheme framed by the Government of India in pursuance of which every manufacturer was required to give a written undertaking to the President of India. In 1985 Government of India issued a Fertilizer (Control) Order under the Essential Commodities Act. Sub-clause (h) of Clause (2) of the order defines 'fertilizer' to mean, any substance used or intended to be used as a fertiliser of the soil and/or crop and specified in Part-A of Schedule I and includes a mixture of fertiliser, mixtures of micro- nutrient fertilisers and special mixture of fertilisers'. Sub-clause (q) of the same clause explains 'prescribed standard of fertilizer' as under: Prescribed standard means (i) in relation to fertiliser included in Column 1 of Part A of Schedule-1, the standard set out in the corresponding entry in Column 2, subject to the limits of permissible variation as specified in Part B of that Schedule; and (ii)in relation to a mixture of fertilisers, the standard set out in respect of that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpared to other countries, the availability of usable quality rock phosphate is rather limited, though available in abundance. This study was made, at the request of Madhya pradesh Government with a view to effectively utilise, to the extent possible the lower grade indigenous rock phosphate from HIRAPUR MINES for SSP production. Experiments in PDIL laboratory has shown that this rock phosphate cannot be processed in the conventional route to produce SSP, as such, and it is imperative to make blends with any standard rock phosphate. The report establishes that the rock phosphate available in our country whether it is in Madhya Pradesh or Jaipur appears to be incapable of producing SSP unless it is blended with imported rock. Proportion of the two depends on the strength of rock obtained from different mines. The PDIL conducted the test for those rocks whose strength varied from 29% P 2 05 and 25% P 2 0 5 and opined that blending of rock with 24% should be in proportion of 20% and 80%. The extract from the report runs as under : The chemical analysis has shown 24.85% P 2 0 5 and 30.03% Silica plus insoluble besides other impurities like high R 2 0 3 compared to 32.4% P 2 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dhya Pradesh State Mining Corporation (MPSMC) and Hindustan Zinc Limited (HZL), and SSP is manufactured by using rocks of standard grade. The quality of indigenous rock phosphate from the above mentioned State owned sources varies considerably from low grade rock of 14% to 16% P2 05 content to high degree rock of +3 1 % P2 05 content. For producing SSP of 16% W.S. P2 05 the rock phosphate used should contain a minimum of +3 1% P2 05 and the conversion efficiency of the rock should be more than 9 1 %. SSP of 16% W.S. P2 05 can be produced by using low grade rocks only after suitably blending it with standard/high grade rock phosphate to have a feed conforming to the above mentioned minimum specifications of +31% P2 05. That in reply to Para 17 of the Petition it is submitted that indigenous rock phosphate is being procured by the SSP Units from Madhya Pradesh State Mining Corporation, Uttar Pradesh Sate Minerals Development Corporation, Rajasthan State Mining Development Corporation and Rajasthan Mines and Minerals limited. Since detailed technical examination of th e various grades of indigenous rock phosphate available from sources other than RSMML was not available, the SSP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escribed information along with the monthly claim for subsidy. According to learned counsel claim for subsidy. According to learned counsel under the said scheme a circular was issued on September 29, 1986 to all the manufacturers of SSP wherein it was clarified that the indigenous rock phosphate being obtained by the manufacturers from sources other than Udaipur was pending a detailed technical examination. He urged that the circular further stated that the prices were to be worked out on the basis of rock phosphate having plus 3 1% P2 05. Therefore, pending completion of detailed technical examination the subsidy worked out was provisional. Anti when the technical examination conducted by the PDIL indicated that on the admitted figures famished by the manufacturers in their quarterly invoices the standard specification could not have been achieved the notice were issued, therefore, the High Court was in error in quashing it. According to him it was open to the department to get it ascertained from an authentic source if the manufacturers of fertiliser were using proper material and achieving the specified standard. He urged that the PDIL being independent and reputed body it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer for it is not possible to draw an inference against the authenticity of the reports which have been given by the authority empowered under the order. It is not the claim of department that at any point of time prior to submission of the PDIL report any step was taken or the government ever required the inspectors to find out if the manufacture carried on by respondents was in accordance with law and rules. To discard the certificate issued by the inspector in the circumstances would be arbitrary without any valid reason. With this we may now examine the PDIL report itself. As has been seen earlier the purpose of getting the rock tested was to pay disability allowance. The purpose being entirely different it could not be utilised for a different purpose. How risky it is to embark on such exercise shall be clear when the result of report obtained by the PDIL is applied to the dates of respondents relied by appellant to justify their action of issuing show cause notice. From paragraph two of the conclusions of the PDIL, extracted earlier, it is clear that the study was made at the request of Madhya Pradesh Government with a view to effectively utilise to the extent possible the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A. +1/2 2.1/2 Size A)+ 1/2 2. 1/2 size B. R.O.M. B. R.O.M. 2. 1st (B) 1st (B) P205+ 28%-30% PrO5 + 27%-29% Sio2 + 18% Sio2+22% Fo203 above 4.5% F 203 above 4.5% A)1/2 size A) 1/2 size B) R.0 M. B)R.O.M. C) By Product Dust 3. II Grade P205 + 22% 25% Sio2 and Fo2O3 No grantee. R.O.M. Further no rock phosphate has been or could be purchased by any manufacturer except through corporation of the State. This fact is admitted in the counter affidavit of the appellant extracted earlier. It is also clear from the letter of Assistant General Manager that Brij Fertilisers did not use any rock except Grade 'A'. It is claimed by the respondents that on a technical assessment conducted by Bhabha Research Institute for Lalitpur rocks that the water soluble in rock phosphate with P2 05 with 29 to 32% is more than 16%. Even if this report is ignored the letter of Assistant Mines Inspector establishes that water soluble phosphate in Hirapur mines of grade 'A' was 16%. Each respondent has filed details of rock phosphate consumed by its unit from various corporations. The av ..... X X X X Extracts X X X X X X X X Extracts X X X X
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