- 1 - NC: 2025:KHC:11303 WP No. 7951 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 7951 OF 2025 (GM-FOR) BETWEEN: M/S. S.M. ENTERPRISES OFFICE AT NO.1827, 31ST CROSS, 11TH MAIN, BANASHANKARI 2ND STAGE, BANGALORE- 560070 REPRESENTED BY IT'S PROP: SYED ABU SUFIYAN S/O SYED NISAR AHAMED H, AGED ABOUT 28 YEARS, …PETITIONER (BY SRI. SRINIVAS V., ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP. BY PRINCIPAL SECRETARY AND ADDITIONAL CHIEF SECRETARY, DEPARTMENT OF FOREST, ECOLOGY AND ENVIRONMENT, 4TH FLOOR, M.S.BUILDING, DR.AMBEDKARVEEDHI, BENGALURU-560001 Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - NC: 2025:KHC:11303 WP No. 7951 of 2025 2. THE PRINCIPAL CHIEF CONSERVATOR OF FORESTS, (HEAD OF FOREST FORCE) ARANYABHAVAN, 18TH CROSS, MALLESHWARAM, BENGALURU-560003. 3. THE CHIEF CONSERVATOR OF FORESTS, SHIMOGA CIRCLE, SHIMOGA -577 201 4. THE DEPUTY CONSERVATOR OF FORESTS SOCIAL FOREST DIVISION SHIMOGA-577 201 …RESPONDENTS (BY SRI. RAHUL CARIAPPA, AGA) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) 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 PRODUCE 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 AND ALSO IN THE SUBSEQUENT WRIT PETITIONS, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - NC: 2025:KHC:11303 WP No. 7951 of 2025 CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA ORAL ORDER Heard the learned counsel Sri.V.Srinivas, appearing for the petitioner and the learned Additional Government Advocate Sri.Rahul Cariappa, appearing for the respondents. 2. The petitioner is before this Court seeking the following prayer: "a) 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% of the sale consideration amount under Section 39-A(1) of the Karnataka Forest Act, 1963 in respect of the timber and forest produce auctioned/sold by the Forest Department in different Government Depots in Karnataka In view of the Judgment rendered by the Division Bench of this Hon'ble Court on 04.10.2017 in the case of Sri. B. Rudragouda and others -vs- State of Karnataka and others and also in the subsequent Writ Petitions, In the Interest of justice and equity. b) ISSUE A WRIT OR CERTIORARI or any other writ or like nature and quash the Bill/Tax Invoice (Sale Confirmation Order) dated _/03/2025 bearing Bill No 01/2024-25 issued by respondent No.4 only in so far as demand of Forest Development Tax at the rate of 12% on the sale value totally amounting to Rs.9,29,280 vide Annexure D to the writ petition and, c) Grant such other relief, order or direction as this Hon'ble Court deems fit under the facts and circumstances of case." - 4 - NC: 2025:KHC:11303 WP No. 7951 of 2025 3. The petitioner is the successful bidder pursuant to a tender notification issued for the purpose of sale of timber. The timber is not being allowed to be lifted by the respondent - Corporation on the score that they should pay the Forest Development Tax. 4. The issue stands answered by plethora of judgments rendered by this Court that Forest Development Tax cannot be demanded on such tender processes. 5. The learned counsel for the petitioner seeks to place reliance upon the judgment rendered by the coordinate Bench of this Court in W.P.No.5253/2025 disposed on 21.02.2025, wherein the coordinate Bench has held as follows: " 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 - 5 - NC: 2025:KHC:11303 WP No. 7951 of 2025 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 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." 6. In that light, the petition deserves to succeed and for the aforesaid reasons, the following: ORDER i) The writ petition is disposed; and ii) The impugned Bill/Tax Invoice at Annexure - D dated __03/2025 bearing Bill No.01/2024-25 issued by respondent No.4, is set aside. Sd/- (M.NAGAPRASANNA) JUDGE KG List No.: 2 Sl No.: 8