Full Judgment
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IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
DATED THIS THE 10TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO.101057 OF 2026 (GM-FOR) BETWEEN: ENSURE DEVELOPERS (MSTC/ENSURE DEVELOPERS/608893) REPRESENTED BY ITS PARTNER RUPESH SH, AGE. 36 YEARS, OCC. BUSINESS, R/O. 5TH CROSS, K H NAGAR, MADDUR TOWN, NEAR GANAPATI, TEMPLE, MADDUR, TQ. MADDUR, DIST. MANDYA, PIN-571428. …PETITIONER (BY SRI. G.N. NARASAMMANAVAR, ADVOCATE)
Digitally signed by AND: CHANDRASHEKAR LAXMAN KATTIMANI Location: HIGH COURT OF 1. THE STATE OF KARNATAKA KARNATAKA REPRESENTED BY ITS SECRETARY, FOREST DEPARTMENT, M.S. BUILDING, AMBEDKAR VEEDHI, BANGALORE, PIN-560001.
2. THE ADDITIONAL PRINCIPAL CHIEF CONSERVATOR OF FOREST (FOREST RESOURCE MANAGEMENT) ARANY BHAVAN, 18TH CROSS, MALLESHWARAM, BENGALURU-560003. -2-
3. THE DEPUTY CONSERVATOR OF FORESTS, HALIYAL DIVISION, HALIYAL, TQ. HALIYAL, DIST. UTTARA KANNADA-581329.
4. THE ASSISTANT CONSERVATOR OF FOREST,
GOVERNMENT TIMBER DEPOT DANDELI, TQ. HALIYAL, DIST. UTTAR KANNADA-581325. …RESPONDENTS (BY SMT. GIRIJA S.HIREMATH, HCGP) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF CONSTITUTION OF INDIA, PRAYING TO A) ISSUE A WRIT OF CERTIORARI QUASHING IMPUGNED SALE INTIMATION/TAX INVOICE DATED 27.01.2026 ISSUED BY THE 3RD RESPONDENT IN FAVOUR OF PETITIONER IN SO FAR AS THE IMPOSING 12% FOREST DEVELOPMENT TAX TO PETITIONER VIDE ANNEXURE-B. B) ISSUE ANY 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 FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI -3-
ORAL ORDER
The present writ petition is filed seeking the following prayer:
“a) Issue a writ of certiorari quashing impugned sale intimation/Tax invoice dated: 27.01.2026 issued by the 3rd respondent in favour of petitioner in so far as the imposing 12% Forest Development Tax to petitioner vide Annexure-B. b) Issue any 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, it has participated
in the public E-tender cum auction of timber and firewood in Haliyal, which has already been sold through a public E-Tender cum auction notification issued by respondent No.2/Authority. 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 sale intimation letter dated 27.01.2026, 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 -4- 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 14.10.2017 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.
3. Learned High Court Government Pleader submitted
that the Hon'ble Apex Court had stayed the refund of the Forest Development Tax collected from the petitioner. Further, she 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 AIR 2018 KAR 19 -5- 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:
ORDER
i. Accordingly, the writ petition is disposed of. ii. All IAs in this writ petition shall stand closed. Sd/- JUSTICE LALITHA KANNEGANTI RH CT: UMD List No.: 1 Sl No.: 36