Motor spirit classification requires more than flash point; suitability for spark ignition engine use must also be proved.

Classification of a petroleum product as motor spirit cannot rest on flash point alone; the product must also be shown, by proper evidence, to be actually, practically and commercially suitable for use as fuel in spark ignition engines. The remand directions required examination of that second criterion, but it was not properly addressed. A mere view that the product could be blended to meet specifications was not conclusive without a specific test report establishing suitability for the prescribed use. On that basis, the Revenue's classification was unsustainable and the demand and penalties were liable to be set aside.

---

---

Issues: Whether the product manufactured by the assessee was classifiable as motor spirit on the basis of flash point alone, and whether the demand and penalties could be sustained without establishing suitability for use as fuel in spark ignition engines.

Analysis: The remand directions had required examination of the second criterion, namely suitability for use as fuel in spark ignition engines. That requirement had not been properly examined on remand. The prior Tribunal decisions relied upon held that classification as motor spirit or special boiling point spirit requires satisfaction of both the flash point criterion and the suitability-for-use criterion. A mere opinion that the product could be blended to meet specifications was not treated as conclusive, and in the absence of a specific test report establishing suitability for the relevant use, the classification adopted by the Revenue could not be sustained.

Conclusion: The classification adopted by the Revenue was unsustainable, and the demand and penalties were liable to be set aside.

Ratio Decidendi: For classification as motor spirit or a similar petroleum product, satisfaction of the flash point requirement alone is insufficient; the product must also be proved to be actually, practically, and commercially suitable for the prescribed use.

---