https://www.taxtmi.com/caselaws?id=329845 Tax liability of a proprietor cannot be recovered from the personal bank account of a power of attorney holder or agent merely because he represented the principal. The Karnataka HC noted that principal and agent remain legally distinct, and personal recovery is impermissible unless the authorities first conduct an enquiry showing that the supposed principal is fictitious, dummy, or that the arrangement is a sham. As no such enquiry was undertaken, direct recovery under Section 14 of the Karnataka Sales Tax Act against the agent's account was unsustainable. The recovery was set aside and the amount already recovered was required to be refunded. en-us Tue, 21 Jun 2016 00:00:00 +0530 Mon, 11 Jul 2016 12:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=329845 Tax liability of a proprietor cannot be recovered from the personal bank account of a power of attorney holder or agent merely because he represented the principal. The Karnataka HC noted that principal and agent remain legally distinct, and personal recovery is impermissible unless the authorities first conduct an enquiry showing that the supposed principal is fictitious, dummy, or that the arrangement is a sham. As no such enquiry was undertaken, direct recovery under Section 14 of the Karnataka Sales Tax Act against the agent's account was unsustainable. The recovery was set aside and the amount already recovered was required to be refunded. Case-Laws VAT and Sales Tax Tue, 21 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=329845