Following the successful construction of the finite T real-time formalism in temporal axial gauge, we attempt to further study the equivalent new imaginary-time formalism of James and Landshoff based on the same Hamiltonian approach in the hope that it will provide the answer to Debye screening in QCD. It turns out that, unlike in the real-time case, energy conservation does not hold because of the unusual representation of the longitudinal field forced upon by the Hamiltonian formulation.