Refund of sales tax on diesel for captive power generation must be adjusted in assessment, not claimed later separately.

The refund scheme under the Government order dated 30.10.1985 covered sales tax already levied and collected on diesel used by captive generating units, but only subject to the prescribed conditions and to be given effect in the assessment itself. It could not be claimed later through a separate refund application after the assessment had attained finality. The Government order dated 23.11.1995 merely extended incentives for a further period and did not create an independent right to refund for taxes paid earlier. On that basis, the claimed refund was not available.

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Issues: Whether the petitioner was entitled to refund of sales tax on diesel consumed for captive power generation on the basis of the Government orders dated 30.10.1985 and 23.11.1995.

Analysis: The refund scheme under the Government order dated 30.10.1985 contemplated repayment of sales tax already levied and collected on diesel consumed by captive generating units, subject to the prescribed conditions. Such benefit had to be worked into the tax liability at the time of assessment, and could not be claimed later by an independent refund application after the assessment had become final. The later Government order dated 23.11.1995 only extended incentives for a further period and did not itself create a standalone right to refund for taxes paid earlier.

Conclusion: The petitioner was not entitled to the claimed refund.

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