- 1 - NC: 2025:KHC:7988 WP No. 24363 of 2024 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. 24363 OF 2024 (GM-FOR) BETWEEN: ISSA SAW MILL (GSTIN 32BPRPP6338D1ZP) AT ISSA SAW MILL, VELLAP, THRIKARIPUR, KASARAGOD, KERALA -671 310 REP. BY ITS PROPRIETOR PRAKASHAN KALLADIL PADINHAREVEETIL …PETITIONER (BY SRI. SIJI MALAYIL., ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP. ITS PRINCIPAL SECRETARY AND ADDITIONAL CHIEF SECRETARY, DEPARTMENT OF FOREST, ECOLOGY AND ENVIRONMENT, M.S BUILDING, 4TH FLOOR, DR.AMBEDKAR VEEDHI, BENGALURU-560 001 2. THE DEPUTY CONSERVATOR OF FORESTS, OFFICE OF THE DEPUTY CONSERVATOR OF FORESTS, SHIMOGA DIVISION, SHIMOGA, HAVING OFFICE NEAR RTO OFFICE, D.C. COMPOUND, BASAVANAGUDI, SHIMOGA, KARNATAKA-577 201 …RESPONDENTS (BY SRI.SESHU V., HCGP) Digitally signed by KRISHNAPPA LAXMI YASHODA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:7988 WP No. 24363 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTION THAT THE STATE GOVT AND ITS AUTHORITIES CANNOT LEVY DEMAND AND COLLECT FOREST DEVELOPMENT FEES AT THE RATE OF 12 PERCENT OF THE SALE CONSIDERATION AMOUNT UNDER SEC 98 A(1) OF THE KARNATAKA FOREST ACT 1963 IN RESPECT OF THE TIMBER AND OTHER FOREST PRODUCE AUCTIONED/SOLD BY THE FOREST DEPARTMENT IN DIFFERENT GOVT DEPOTS IN KARNATAKA IN VIEW OF THE JUDGEMENT RENDERED BY THE DIVISION BENCH OF THIS HONBLE COURT ON 4.10.2017 IN WP NO. 43937-938/2016 VIDE ANNX-A 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 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, Forest Development Tax is levied as could be seen from the sale intimation letters at Annexures-C and D. - 3 - NC: 2025:KHC:7988 WP No. 24363 of 2024 2. 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. 3. In view of the decision rendered by the Division Bench, the impugned sale intimation letters at Annexures ‘C’ and ‘D’ to the extent of levy of Forest Development Tax, are set aside. The Writ petition stands disposed of accordingly. Sd/- (R DEVDAS) JUDGE JT/- CT: JL