The problem with turning down an assignment is that there's no way to come out of it without some kind of loss. If you say it's a bad idea, you insult your supervisor who came up with it. If you say you don't have the time, your supervisor will think you're lazy. And if you say you don't have the skill to do it, your supervisor may lower their estimation of your abilities. Your goal should be to minimize the damage.
TACTICS
Attitude: Realize that since you can't refuse outright or say it's a bad idea, you'll have to accept some damage to your image in order to get out of the assignment.
Preparation: If you're going to claim lack of skill, have the name of someone else who does have the skill. If you're asking for priorities to be set, prepare a complete list of the projects you're working on and the dates they're due.
Timing: Never accept or decline an assignment immediately. Instead, say it's an interesting idea and you'd like some time to study it and prepare questions. Then, wait for your supervisor to bring it up again.
Behavior: Express your disappointment at not being able to take on this wonderful assignment and your willingness, in fact, eagerness, to take on others in the future. Everything should be put in terms of what's best for the company.
ADAPTATIONS
This script can be modified to:
Counter a request by a family member, ...
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