- 1 - NC: 2025:KHC:7862 WP No. 5253 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE R DEVDAS WRIT PETITION NO. 5253 OF 2025 (GM-FOR) BETWEEN: M/S. N.S. WOOD SUPPLIERS, NO. 2016, SHOBHA NIVAS, CAMPING GROUND, BANGARPET, REPRESENTED BY ITS PROP NIKASH N SHETTY, S/O NITHYA NANDA SHETTY, AGED ABOUT 33 YEARS, PROPRIETORSHIP CONCERNED. …PETITIONER (BY SRI. V. SRINIVAS, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, REPRESENTED BY PRINCIPAL SECRETARY, AND ADDITIONAL CHIEF SECRETARY, DEPARTMENT OF FOREST, ECOLOGY AND ENVIRONMENT, 4TH FLOOR, M.S. BUILDING, DR. AMBEDKAR VEEDHI, BENGALURU - 560 001. 2. THE PRINCIPAL CHIEF CONSERVATOR OF FORESTS (HEAD OF FOREST FORCE) ARANYA BHAVAN, 18TH CROSS, MALLESHWARAM, BENGALURU - 560 003. Digitally signed by KRISHNAPPA LAXMI YASHODA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:7862 WP No. 5253 of 2025 3. THE DEPUTY CONSERVATOR OF FORESTS ARANYA BHAVAN, 18TH CROSS, MALLESHWARAM, BENGALURU - 560 003. 4. THE DEPUTY CONSERVATOR OF FORESTS, SOCIAL FOREST DIVISION, BANGALORE RURAL DISTRICT - 560 003. 5. THE KARNATAKA FOREST DEVELOPMENT CORPORATION LTD., 1ST FLOOR, "VANAVIKAS" 18TH CROSS, MALLESHWARAM, BANGALORE - 560 003. REPRESENTED BY ITS MANAGING DIRECTOR …RESPONDENTS (BY SRI. SESHU V, HCGP FOR R1 TO R4) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE BY ISSUANCE OF APPROPRIATE WRIT OR ORDER OR DIRECTION THAT THE STATE GOVERNMENT AND ITS AUTHORITIES CANNOT LEVY, DEMAND AND COLLECT FOREST DEVELOPMENT TAX AT THE RATE OF 12 PERCENT OF THE SALE CONSIDERATION AMOUNT UNDER SECTION 98-A(1) OF THE KARNATAKA FOREST ACT, 1963 IN RESPECT OF THE TIMBER AND FOREST PRODUCED AUCTIONED / SOLD BY THE FOREST DEPARTMENT IN DIFFERENT GOVERNMENT DEPOTS IN KARNATAKA IN VIEW OF THE JUDGMENT RENDERED BY THE DIVISION BENCH OF THIS HONBLE COURT ON 04.10.2017 IN THE CASE OF SRI.B.RUDRAGOUDA AND OTHERS VS STATE OF KARNATAKA AND OTHERS AT ANNX-D IN W.P.NO. 43937/2016 ALSO IN THE SUBSEQUENT WRIT PETITION AND ETC., - 3 - NC: 2025:KHC:7862 WP No. 5253 of 2025 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 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 is concerned. Nevertheless, demand is raised in respect of Forest Development Tax as could be seen at Annexure-E. 3. With 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 - 4 - NC: 2025:KHC:7862 WP No. 5253 of 2025 directions issued by the Division Bench and they will not be permitted to raise such a demand regarding Forest Development Tax. 4. In view of the decision rendered by the Division Bench, the impugned demand notice at Annexure-E dated 07.02.2025 to the extent of levy of Forest Development Tax, is set aside. The Writ petition stands disposed of 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 rv CT: BHK