Subsisting garnishee order prevents a second recovery order for the same liability without proper basis.

A subsisting garnishee order securing a sales tax demand bars the Department from issuing a second garnishee order against another debtor for the same liability without a proper basis. Where part of the demand had already been recovered under the earlier order and that order had not been withdrawn, the fresh order against the petitioner's bankers was unjustified and was quashed. The challenged bank restraint was therefore set aside, and the petitioner was left free from the recovery action.

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Issues: Whether the Department could issue a fresh garnishee order under section 17 of the Andhra Pradesh General Sales Tax Act, 1957, against the petitioner's bankers when an earlier garnishee order against another debtor was still subsisting and had not been withdrawn.

Analysis: The petitioner had arisen liability under a provisional assessment under section 15 of the Andhra Pradesh General Sales Tax Act, 1957, and part of the amount had already been recovered under the first garnishee order. The earlier order remained in force, and the debtor proceeded against under that order had not stated that no further amount was payable to the petitioner. In these circumstances, the Department had no justification to re-exercise the garnishee power against the petitioner's bankers for the same outstanding demand.

Conclusion: The fresh garnishee order dated 28 February 1995 was unjustified and was quashed.

Final Conclusion: The writ petition succeeded and the impugned garnishee action under the sales tax recovery provision was set aside, leaving the petitioner free from the challenged restraint on its bank account.

Ratio Decidendi: Where a garnishee order under the sales tax recovery provision is already subsisting and continues to secure the demand, the authority cannot issue another garnishee order against a different debtor for the same outstanding liability without a proper basis for doing so.

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