Is it illegal when an organisation purchases diesel or petrol for purposes other than for usage by vehicles? Ex: For generator or motor in their building. Must they purchase from the oil companies directly at the full rate? or are they allowed to purchase at the subsidised rate sold at petrol bunks which are for the vehicle users?
4 Replies
Shefali Bajpai
(Article Assitant & CA Final Student)
(1148 Points)
Replied 06 June 2008
Sale of Fuel @ Petrol Pump is not only meant for Vehicles. So using the fuel bought from Petrol Pump @ subsidized rate for running G-sets or Motors is not violation of any law.
As for Manufacturering units where huge quantity of Fuel is required for them it depends on the Quota permitted by Director of Industries.
Ranjini.V
(CA Student)
(141 Points)
Replied 06 June 2008
Purchase of fuel need not be only for vehicles. It can be used for gensets also. There is no restriction as to where it is purchased from. The entire amount will be allowed. It is 100% legal. So dont worry
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