Garnishee notice quashed where appeal and stay application were pending, barring coercive recovery before appellate decision.

A garnishee notice under Section 29 of the Andhra Pradesh Value Added Tax Act, 2005 could not be sustained where the assessee's appeal against the assessment order and the stay application remained pending. Coercive recovery from a third party was considered inappropriate before the appellate forum decided the stay request. The garnishee notice was quashed, while the revenue was left free to pursue recovery in accordance with law after disposal of the stay application.

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Issues: Whether a garnishee notice issued under Section 29 of the Andhra Pradesh Value Added Tax Act, 2005 could be sustained when the assessee's appeal and stay application against the assessment order were pending.

Analysis: The assessment order had been challenged in appeal and a stay petition was pending without disposal. In that situation, the impugned garnishee notice sought immediate recovery of the assessed dues from a third party even before the appellate request for stay was decided. The pendency of the appeal and stay application made coercive recovery through the garnishee notice inappropriate at that stage.

Conclusion: The garnishee notice was quashed, while the revenue was left at liberty to proceed with recovery in accordance with law after the stay application was decided.

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