From Directive 2004/38/EC, it is clear that national legislation only applies to extended family members (in-laws,cousins) and not spouses. The DOJ have no right to use their national legislation to refuse E.U1 applications for spouses.
Here's the relevant part of the Directive 2004/38/EC.
http://eur-lex.europa.eu/LexUriServ/Lex ... 048:EN:PDF
5)The right of all Union citizens to move and reside freely within the territory of the Member States should, if it is to be exercised under objective conditions of freedom and dignity, be also granted to their family members, irrespective of nationality. For the purposes of this Directive, the definition of ‘family member’ should also include the registered partner if the legislation of the host Member State treats registered partnership as equivalent to marriage.
(6)In order to maintain the unity of the family in a broader sense and without prejudice to the prohibition of discrimination on grounds of nationality, the situation of those persons who are not included in the definition of family members under this Directive, and who therefore do not enjoy an automatic right of entry and residence in the host Member State, should be examined by the host Member State on the basis of its own national legislation, in order to decide whether entry and residence could be granted to such persons, taking into consideration their relationship with the Union citizen or any other circumstances, such as their financial or physical dependence on the Union citizen.
Their rejection of E.U1 applications and their application of Irish S.I 656 on E.U families is completely illegal and I think we should be able to claim damages