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Are you sure? Did you try to pass another sql script? I think it works now because you still have users.sql hardcoded:
#!/bin/bash
. /test1/product/r12/TEST1/apps/apps_st/appl/APPSTEST1_xyz.env
...

Careful quoting.

If I correctly understand what you're trying to do, try changing the line:
@users.sqlin output.sh to:
$(cat users.sql)