Concessional tax on manufacturing fuel turned on whether diesel and lubricant qualified as raw material under sales tax law.

Concessional tax on High Speed Diesel, Furnace Oil and lubricant used in textile yarn manufacturing was allowed where the fuel was treated as raw material under the Rajasthan Sales Tax Act, 1994. The dispute was considered covered by an earlier Supreme Court ruling on the same question, which accepted diesel used for running generator sets in the manufacturing process as raw material for concessional tax. On that basis, the assessee was found to satisfy the statutory conditions for the concessional rate, and the Revenue's challenge failed; the revision petition was dismissed.

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Issues: Whether the assessee was entitled to concessional tax on High Speed Diesel, Furnace Oil and Lubricant treated as raw material for manufacturing textile yarn under the Rajasthan Sales Tax Act, 1994.

Analysis: The dispute was held to be covered by the earlier Supreme Court decision on the same legal question. Diesel used for running generator sets in the manufacturing process was treated as raw material for the purpose of concessional tax. The assessee was found to satisfy the statutory conditions for availing the concessional rate, and the relevant fuel and lubricant usage was brought within the statutory definition relied upon in that decision.

Conclusion: The assessee was not granted any further relief in this revision; the challenge by the Revenue failed and the revision petition was dismissed.

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