- 1 - NC: 2025:KHC:2832 WP No. 1564 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE R DEVDAS WRIT PETITION NO. 1564 OF 2025 (GM-FOR) BETWEEN: MYSORE MERCANTILE COMPANY LIMITED, REP BY ITS MANAGING DIRECTOR- HALADY SRINIVASA SHETTY TERGAONKAR, PLACE OF BUSINESS AT: 46, 36TH CROSS, 4TH T BLOCK, JAYANAGAR, BENGALURU DIST, BENGALURU URBAN KARNATAKA - 560 041. …PETITIONER (BY SRI. GOUREESH S GOUDAR., ADVOCATE) AND: 1. THE STATE OF KARNATAKA, REP. BY ITS PRINCIPAL SECRETARY AND ADDITIONAL CHIEF SECRETARY DEPARTMENT OF FOREST, ECOLOGY AND ENVIRONMENT, M.S. BUILDING. DR. AMBEDKAR VEEDDHI, BANGALORE - 560 001. 2. THE PRINCIPAL CHIEF CONSERVATOR OF FORESTS, ARANAYA BHAVAN, 18TH CROSS. MALLESHWARAM, BANGALORE - 560 003. 3. THE DEPUTY CONSERVATOR OF FORESTS, HALIYAL DIVISION, HALIYAL, DIST UTTAR KANNADA - 584 329. Digitally signed by KRISHNAPPA LAXMI YASHODA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:2832 WP No. 1564 of 2025 4. THE DEPUTY CONSERVATOR OF FORESTS, YELLAPUR DIVISION, YELLAPUR, DIST UTTAR KANNADA - 581 359. …RESPONDENTS (BY SRI.H.K.KENCHE GOWDA, AGA) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO A) TO QUASH THE FOREST DEVELOPMENT TAX (FDT) AS LEVIED BY THE R3 AND 4 AS IN INVOICE BILL NO.1070101/16-08- 2022/80 ON DATED 24/08/2022, INVOICE BILL NO. 1070101/27-02/2023-75 ON DATED, 06/03/2023 AND INVOICE BILL NO. 1070501/19-08/2024/141 ON DATED 26/08/2024 I.E. ANNX-B TO D REFUND THE SAME TO THE PETITIONER AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE R DEVDAS ORAL ORDER Learned AGA takes notice for all the Respondents. 2. Learned counsel for the petitioner submits that although a Division Bench of this court in the case of Sri. B. Rudragouda Vs. State of Karnataka and Others reported in AIR 2018, KAR 19 has held that the respondent-State is not entitled to raise a demand or collect Forest Development Tax - 3 - NC: 2025:KHC:2832 WP No. 1564 of 2025 and in a Special Leave Petition filed by the State in C.A.Nos.3974- 4068/2016 and connected matters the Hon'ble Apex Court has only stayed the order of the Division Bench insofar as refund of the tax already collected, nevertheless, demand is again being raised in respect of Forest Development Tax as could be seen at Annexures-B to D. However, learned counsel for the petitioner submits that the petitioner has already paid the demand raised at Annexures-B to D. The learned counsel would therefore submit that the only prayer that requires to be considered by this Court is regarding refund. 3. Admittedly, since the Hon'ble Supreme Court has stayed that portion of the order passed by the Division Bench directing refund of the Forest Development Tax already collected, it would not be permissible for this court to issue such a direction to the respondents at this point of time, to refund the tax. 4. The writ petition stands disposed of granting liberty to the petitioner to move an application before the competent authority seeking refund once a decision is taken by the Hon'ble Apex Court upholding the directions issued by the - 4 - NC: 2025:KHC:2832 WP No. 1564 of 2025 Division Bench for refund of the Forest Development Tax already collected. 5. Needless to observe that having regard to the directions issued by the Division Bench in the case of B. Rudragouda and the fact that the Hon'ble Supreme Court has stayed only that portion of the order pertaining to refund of the tax already collected, the respondent authorities are directed to take note of the directions issued by the Division Bench and they will not be permitted to raise such a demand regarding Forest Development Tax, having regard to the decision of the Division Bench. Ordered accordingly. In view of the disposal of the main matter, I.A.No.1/2025 does not survive for consideration and the same stands disposed of. Sd/- (R DEVDAS) JUDGE AMA