Personal bank account attachment for company tax dues is impermissible without express statutory authority.

Section 86 of the Value Added Tax Act, 2003 creates vicarious liability for offences by companies, but it does not authorise civil recovery of company dues from a director's private assets. The Gujarat High Court held that, in the absence of express statutory authority, the tax authorities could not attach a director's personal bank account to recover the company's liability. The attachment of the director's personal account was therefore impermissible and had to be lifted.

---

---

Issues: Whether the tax authorities could attach the personal bank account of a company director for recovery of dues payable by the company under the Value Added Tax Act, 2003.

Analysis: Section 86 of the Act deals with offences by companies and deems persons in charge responsible for the offence, thereby attracting vicarious liability in the context of prosecution for the company's offence. That provision does not authorise recovery of company dues by proceeding against the private movable or immovable property, including the personal bank account, of a director. The bank account in question was the director's personal account, and the recovery action was directed towards dues of the company.

Conclusion: The attachment of the director's personal bank account for recovery of the company's dues was not permissible and was required to be lifted.

Ratio Decidendi: In the absence of express statutory authority, company dues under the Value Added Tax Act, 2003 cannot be recovered by attaching the personal property or personal bank account of a director; Section 86 creates vicarious liability for the company's offence, not a power of civil recovery against the director's private assets.

---