- 1 - HC-KAR NC: 2026:KHC-D:2543 WP No. 101245 of 2026 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 18TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 101245 OF 2026 (GM-FOR) BETWEEN: MARIKAMBA WOOD SUPPLIERS, A PROPRIETORSHIP, R/BY ITS PROPRIETOR, SHRI. GANAPATI S/O MANJUNATH NILEKANI, AGED. 55 YEARS, OCC. BUSINESS, R/O. KUMATA ROAD, NILEKANI, NILEKANI POST, YELLAPUR, DIST. UTTAR KANNADA-581403. …PETITIONER (BY SRI. PRATAPSING JADHAV, M. B. BALLARY AND S.M. BYAGADI, ADVS.) AND: 1. THE STATE OF KARNATAKA, REPRESENTED BY ITS SECRETARY, FOREST DEPARTMENT, M. S. BUILDING, AMBEDKAR VEEDHI, BENGALURU 560001. 2. THE CONSERVATOR OF FOREST, R/BY ITS CONSERVATOR OF FOREST, UTTAR KANNADA DIVISION, DIST. KANNADA DIVISION, SARSI DIVISION 581402. 3. THE DEPUTY CONSERVATOR OF FOREST, GOVERNMENT TIMBER DEPOT, R/BY ITS DEPUTY CONSERVATOR, YELLAPUR DIVISION, YELLAPUR, TQ. YELLAPUR, DIST. KANNADA DIVISION 581359. …RESPONDENTS (BY SRI. T. HANUMAREDDY, AGA) YASHAVANT NARAYANKAR Digitally signed by YASHAVANT NARAYANKAR Date: 2026.02.19 12:32:55 +0000 - 2 - HC-KAR NC: 2026:KHC-D:2543 WP No. 101245 of 2026 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA, PRAYING TO, A) ISSUE WRIT OF CERTIORARI QUASHING IMPUGNED SALE BILL/TAX INVOICE BEARING NO.1070502/18-08-2025/106 DATED 25.08.2025 ISSUED BY THE 3RD RESPONDENT VIDE ANNEXURE-E; B) ISSUE ANY OTHER WRIT OR DIRECTION AS DEEMED FIT BY THIS HON’BLE COURT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND TO MEET THE ENDS OF JUSTICE AND EQUITY. THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL ORDER The present writ petition is filed seeking the following prayers: “a) Issue writ of certiorari quashing impugned sale Bill/Tax invoice bearing no.1070502/18-08- 2025/106 dated 25.08.2025 issued by the 3rd respondent vide ANNEXURE-E; b) Issue any other writ or direction as deemed fit by this Hon’ble court on the facts and circumstances of the case and to meet the ends of justice and equity.” 2. It is the case of the petitioner that the petitioner being a proprietorship firm has a trade licence and participated - 3 - HC-KAR NC: 2026:KHC-D:2543 WP No. 101245 of 2026 in the public tender cum auction of timber, poles etc., Babool acacia timbers and others in Yellapur Division of Uttar Kannada. It is the case of the petitioner that, the petitioner is surprised to see that respondent No.3/Authority has levied Forest Development Tax to an extent of 12% on the wood purchased by the petitioner through the Tax Invoice/Sale Bill dated 25.08.2025, where it is stated that Forest Department Tax was introduced as per Section 98A of the Karnataka Forest Act. The 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. The 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 04.10.2017 insofar as refund is concerned. It is submitted that in the light of the above, there shall be a direction not to levy and there may be direction as prayed for. 1 AIR 2018 KAR 19 - 4 - HC-KAR NC: 2026:KHC-D:2543 WP No. 101245 of 2026 3. Learned AGA submitted that the Hon'ble Apex Court had stayed the refund of the Forest Development Tax collected from the petitioner. Further, 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. The prayer of the petitioner seeking to quash the sale intimation letter as far as imposition of FDT is concerned, in view of the appeal filed by the Government, the petitioner is not entitled for any relief. As far as demanding and collecting the Forest Development Tax in respect of the timber and other forest produces, auctions held by the Forest 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: - 5 - HC-KAR NC: 2026:KHC-D:2543 WP No. 101245 of 2026 ORDER i. Accordingly, the writ petition is disposed of. ii. All IAs in this petition stands disposed of. Sd/- JUSTICE LALITHA KANNEGANTI YAN CT:CNB List No.: 1 Sl No.: 25