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Judgment
Heard learned Counsel for the parties.
Vide impugned order dated 24.04.2018 writ petition filed by the respondent has been allowed. Order dated 18.02.2018 challenged in the writ
petition has been set aside. The respondent has been permitted direct sale of bio fuel in the State of Rajasthan in terms of the Central Government
Notification dated 29.06.2017.
On 19.12.2005 the Ministry of Petroleum & Natural Gas issued an order called Motor Spirit and High Speed Diesel (Regulation of Supply
Distribution and Prevention of Malpractices) Order, 2005. As per clause 6 of the order a dealer could supply motor spirit and high speed diesel
blended with ethanol and biodiesel. The Notification issued in 2005 was amended on 10.08.2015. Clause 6A was inserted in the order which reads
as under:-
“6A. Limited purpose of direct sale of bio-diesel blending with high speed diesel:-
(1) The Central Government may permit the sale ofbio-diesel (B-100) for blending with high speed diesel to bulk consumers, in accordance with the
standards specified by Bureau of Indian Standards namely(i) the Railways,
(ii) the State Transport Undertakings, and
(iii) other bulk consumers having minimumrequirement of bio-diesel for their own consumption by a tank truck load supply which shall not be less than
twelve thousand litres.
(2) For the purposes of clause (1), “oil company’ means the Indian Oil Company Limited, the Hindustan Petroleum Corporation Limited, The
Bharat Petroleum Corporation Limited, any private bio-diesel manufacturers, the authorised dealers of such oil companies and Joint Ventures of Public
Sector Oil Marketing Companies authorised by the Central Government.â€
Relevant would it be to note that as per clause (1) of clause 6A the Central Government could permit sale of bio-diesel for blending with high speed
diesel to bulk consumers. The use of the word ‘may’ in sub-para (1) of clause 6A shows that a power was vested in the Central Government
to permit the sale of biodiesel but to bulk consumers. Bulk consumers were defined in the clause in question. On 29.06.2017 clause 6A was
substituted to read as under:-
“6A(1) The Central Government may permit the direct sale of bio-diesel (B-100) for blending with high speed diesel to all consumers, in
accordance with the specified blending limits and the standards specified by the Bureau of Indian Standards.
(2) The owner of every outlet selling bio-diesel (B100) shall prominently display at the place of business the permissible limits specified by the
manufacturers of vehicles and the standards specified by the Bureau of Indian Standards for blending of bio-diesel (B-100) for use of consumers in
their vehicles.
Explanation.- For the purposes of this clause, â€oil company†means the Indian Oil Corporation Limited, the Hindustan Petroleum Corporation
Limited, the Bharat Petroleum Corporation Limited, any private biodiesel manufacturers, the authorized dealer of such oil companies and joint ventures
of public sector oil marketing companies authorised by the Central Government.â€
Relevant would it be to highlight that the amendment was to the effect that the Central Government may permit direct sale of bio-diesel for blending
with high speed diesel to all consumers. Meaning thereby the permission which could be granted by the Central Government for blending bio-diesel
with high speed diesel which was confined to bulk consumers earlier on was widened. The sale could be to all consumers. The State of Rajasthan had
issued an order on 10.04.2017 restraining direct sale of bio diesel to all consumers.
The view taken by the learned Single Judge is that in view of the amendment made vide Notification dated 29.06.2017 the order dated 10.04.2017
could not be enforced any further.
Suffice it to state that as per the amended Notification dated 29.06.2017 it would be permissible to directly sale biodiesel for blending with high
speed diesel to all consumers but this would be after taking permission from the Central Government. Thus the omnibus direction issued by the learned
Single Judge is contrary to the Notification.
The grievance of the respondent that the Central Government is not permitting direct sale of bio-diesel for blending with high speed diesel to all
consumers is neither here nor there for the reason the order empowers the Central Government to permit direct sale of bio-diesel for blending with
high speed diesel to all consumers and this does not mean that the Central Government is bound to do so.
The appeal is allowed. The impugned order dated 24.04.2018 is set aside. The writ petition filed by the respondent is dismissed. Â