Mandamus can enforce a binding tax tribunal finding when the department ignores that no tax was collected.

A writ of mandamus was held maintainable to compel a taxing authority to act in conformity with a binding appellate finding that the assessees had not collected tax from purchasers. The Tribunal's conclusion that the sums received were only deposits was final and binding on departmental under the sales tax scheme, so recovery could not proceed on the contrary footing. Although the Government Order relied on was only administrative and created no enforceable right by itself, the officer remained under a public duty to implement the Tribunal's determination. The demand could not be enforced in disregard of that finding, and relief was moulded accordingly.

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Issues: Whether a writ of mandamus could be issued to compel the taxing authority to give effect to the Appellate Tribunal's finding that the assessees had not collected tax from their purchasers, and whether the department could proceed to collect the demand notwithstanding that finding.

Analysis: The Tribunal had recorded a clear finding that the amounts received by the assessees were only deposits and did not represent tax collected from purchasers. Under the scheme of the Madras General Sales Tax Act, the Tribunal's order was final and binding on the departmental authorities. The Government Order relied upon by the assessees was only administrative in character and did not itself create enforceable rights, but the real grievance was the officer's failure to act consistently with the Tribunal's conclusion. In the circumstances, the officer was under a public duty to implement the finding and could not disregard it while pursuing recovery on the footing that tax had been collected.

Conclusion: A writ of mandamus was maintainable and was rightly granted to compel the authority to act in conformity with the Tribunal's finding; the demand could not be enforced in disregard of that finding.

Final Conclusion: The petition succeeded, and the requested relief was moulded into mandamus, with the department restrained from proceeding contrary to the binding appellate determination.

Ratio Decidendi: Where an appellate tax authority has conclusively found that no tax was collected, the departmental officer must give effect to that finding and a writ of mandamus will lie to enforce the corresponding public duty, even if the petition was framed as one for prohibition.

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