The court is examining whether the respondent's restriction of Distillate Marine Fuel to "solely" marine use and the application of lubricity parameters are consistent with IS 16731:2019, given the fuel's sulphur content and the standard's scope.

ORAL ORDER

(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)

1. Learned Senior Standing Counsel Mr. Utkarsh Sharma, shall take specific instructions upon the following issues :-

(i) The paragraph no.3 of the End-use Declaration (bond) which is suggested by the respondent-department mentions about the Indian Standard (IS) Guidelines 16731 : 2019 / ISO 8217: 2017 and the petitioner has been asked to execute such bond for use of Distillate Marine Fuel “solely” for the use/sale of Marine purpose. Whereas, the scope of IS 16731 : 2019 / ISO 8217: 2017 refers that the specification for fuel in such Indian Standards can also be applied to fuels used in Stationary Diesel Engines of the same or similar type as those used for Marine purposes. The same IS also classifies about 7 categories of Distillate Fuels one of which is for Diesel Engine deployed for emergency purposes.

(ii) The initial test report of Central Revenue Control Laboratory, Delhi dated 14.11.2025, evaluates 17 parameters, whereas the test report of MRPL considered 19 parameters. The affidavit which is tendered today, dated 23.04.2026, more particularly, paragraph no.6 refers to one of the parameters of “centane number” and it is mentioned that the tested samples meet 18 out of 20 parameters of Automotive Diesel Fuel (ADF) with only a slightly lower centane number i.e. 50.5 against the minimum requirement 51. The report further states that the Sulphur and lubricity content fall outside IS 1460 limit. It further refers that even if the imported product were all to be treated as Distillated Marine Fuel as declared under CTH 2710: 1961 conforming IS 16731 : 2019 / ISO 8217 : 2017, it would only be classified under the DMX grade and is to be strictly used for Marine purposes / Marine vessels only.

2. At this stage we may refer that the respondent has objected to the parameter of lubricity as specified for Distillate Marine Fuel. However, perusal of the IS would reveal that the requirement of lubricity, corrected wear scar diameter and the DMX grade parameter of 520µm will only be applicable to fuels with a Sulphur content below 500mg / kg (0.050 % mass). Whereas, the sample of the petitioner, indicates the Sulphur content as 0.17%, which falls within the parameter of maximum limit of 1.00, as prescribed for Distillate Marine Fuel. Hence, the respondent - authority shall explain that how the parameter of lubricity relating to DMX grade fuel can be applied to the case of petitioner, as the contents of Sulphur is below the limit prescribed for Distillate Marine Oil as per IS 16731:2019.

3. We further direct that the statements made in paragraph no.7 of the affidavit dated 23.04.2026, restricting the use of Distillate Marine Oil on the basis of classification under the DMX grade shall also be explained by the respondent-authority.

The matter is ordered to be listed on 27.04.2026, at 2:30 p.m.