Refund and interest must follow a binding Tribunal order despite a pending tax case, with no security condition allowed.

A binding Tribunal order granting relief remained operative, and the assessing authority was bound to give effect to it even though a tax case was pending. A departmental appeal did not suspend the duty to implement the appellate order, and the authority could not insist on security as a condition for refund. Interest on the refund was also payable at the statutory rate under section 24(4) of the Tamil Nadu General Sales Tax Act, 1959. The assessee was therefore entitled to refund and interest, and the writ of mandamus was justified.

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Issues: Whether the assessee was entitled to refund and interest when the Tribunal's order granting relief had not yet been implemented, notwithstanding the pendency of a tax case.

Analysis: The Tribunal had already granted relief in favour of the assessee, and that order had not been set aside. A departmental appeal or pending tax case did not relieve the assessing authority of the duty to give effect to the Tribunal's order. The respondent could not insist on security as a condition for refund in the teeth of a binding appellate order. Under section 24(4) of the Tamil Nadu General Sales Tax Act, 1959, interest on the refund was also payable at the statutory rate.

Conclusion: The assessee was entitled to implementation of the Tribunal's order, refund of the amount due, and interest thereon, and the writ of mandamus was justified.

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