- 1 - HC-KAR NC: 2026:KHC-D:2093 WP No. 101110 of 2026 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 11TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO.101110 OF 2026 (GM-FOR) BETWEEN: SRI. GANGADHAR C/O. AMBAKKA KAMAKAR, PROPRIETOR OF M/S. ARANYA, AGED ABOUT. 30 YEARS, OCC. BUSINESS, R/AT. 5Y NO.4A/B-4A/5 D, SHANTI BADAVANE, NEAR GANESH MANDIR, KHASBAG, BELAGAVI DISTRICT-590003. …PETITIONER (BY SRI. VINAYAK R.BHAT, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, REPRESENTED BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF FOREST, ECOLOGY AND ENVIRONMENT, M.S. BUILDING, DR. B.R. AMBEDKAR VEEDHI, BENGALURU-560001. 2. THE PRINCIPAL CHIEF CONSERVATOR OF FORESTS, ARANYA BHAVAN, 18TH CROSS, MALLESHWARAM, BENGALURU-560003. 3. THE DEPUTY CONSERVATOR OF FORESTS, YELLAPUR DIVISION, YELLAPUR, UTTARA KANNADA DISTRICT-581359. Digitally signed by YASHAVANT NARAYANKAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC-D:2093 WP No. 101110 of 2026 4. THE ASSISTANT CONSERVATOR OF FORESTS, MUNDGOD SUB-DIVISION, MUNDGOD, UTTARA KANNADA DISTRICT-581349. …RESPONDENTS (BY SRI. T. HANUMAREDDY, ADDL. GOVT. ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA, A) ISSUE A WRIT OF CERTIORARI OR APPROPRIATE WRIT QUASHING THE DEMAND FOR FOREST DEVELOPMENT TAX OF RS.94,725/- CONTAINED IN THE SALE INTIMATION LETTER DATED 02/02/2026 ISSUED BY THE 4TH RESPONDENT TO THE PETITIONER PRODUCED AT ANNEXURE-B BEFORE THIS HON’BLE COURT. B) ISSUE A WRIT OF MANDAMUS OR APPROPRIATE DIRECTION TO THE RESPONDENTS TO ACCEPT PAYMENT OF MATERIAL VALUE (RS.7,89,376/-), GST (RS.1,59,138/-), AND INCOME TAX (RS.22,103/-) ONLY, AND FORTHWITH ISSUE THE RELEASE ORDER/PERMIT FOR LIFTING THE TIMBER PURCHASED IN THE AUCTION DATED 02/02/2026 (LOT NOS. 13.0, 95.0, 100.0, 108.0, AND 128.0); BY CONSIDER THE PETITIONER’S REPRESENTATION DATED 03-02-2026 PRODUCED AT ANNEXURE-C BEFORE THIS HON’BLE COURT. C) GRANT SUCH OTHER RELIEFS AS THIS HON’BLE COURT DEEMS FIT IN THE INTEREST OF JUSTICE. THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2026:KHC-D:2093 WP No. 101110 of 2026 CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL ORDER The present writ petition is filed seeking the following prayer: “a) Issue a Writ of Certiorari or appropriate writ quashing the demand for Forest Development Tax of Rs.94,725/- contained in the Sale Intimation Letter dated 02/02/2026 issued by the 4th Respondent to the petitioner produced at ANNEXURE-B before this Hon’ble Court. b) Issue a Writ of Mandamus or appropriate direction to the Respondents to accept payment of Material Value (Rs.7,89,376/-), GST (Rs.1,59,138/-), and Income Tax (Rs.22,103/-) only, and forthwith issue the Release Order/Permit for lifting the timber purchased in the auction dated 02/02/2026 (Lot Nos. 13.0, 95.0, 100.0, 108.0, and 128.0); by consider the petitioner’s representation dated 03-02-2026 produced at ANNEXURE-C before this Hon’ble Court. c) Grant such other reliefs as this Hon’ble Court deems fit in the interest of justice.” 2. It is the case of the petitioner that he had purchased the timber wood from respondent No. 3 in the auction held on 02.02.2026 totally amounting to Rs.10,65,342/- including the Forest Development Tax 12% as indicated in the Tax Sale Intimation Letter 02.02.2026 where it is stated that Forest - 4 - HC-KAR NC: 2026:KHC-D:2093 WP No. 101110 of 2026 Department Tax was introduced as per Section 98A of the Karnataka Forest Act. Division Bench of this Court by order dated 04.10.2017 in the case of Sri B. Rudragouda Vs. State of Karnataka and others1 held that Section 98A of the Karnataka Forest Act, 1963 is unconstitutional and has struck down the same. State had challenged the said order before the Hon'ble Apex Court. The Hon'ble Apex Court has only stayed the High Court Order dated 14.10.2017 in so far as refund is concerned. It is submitted that in the light of the above, there shall be a direction not to levy. 3. Learned AGA submitted that the Hon'ble Apex Court had stayed the refund of the Forest Development Tax collected. He does not dispute the fact that several petitions are disposed of. 4. Having heard the learned counsels on either side, perused the material on record. As far as demanding and collecting the Forest Development Tax in respect of the timber and other forest produces, auctions held by the Forest 1 AIR 2018 KAR 19 - 5 - HC-KAR NC: 2026:KHC-D:2093 WP No. 101110 of 2026 Department and the Government, timber depots across the State of Karnataka are concerned, holding demand, collection and refund of the Forest Development Tax would be subject to the final outcome of W.A. No. 743/2021 and connected matter pending before this Court and Civil Appeal Nos. 3974 to 4068 of 2016 and Civil Appeal Nos. 3214 to 3271 of 2018 pending before the Hon’ble Apex Court. Accordingly, this Court is passing the following: ORDER i. Accordingly, the writ petition is disposed of. ii. All IAs in this petition stand disposed of. Sd/- JUSTICE LALITHA KANNEGANTI JTR CT: UMD List No.: 1 Sl No.: 24