Development Tax On Forest Products: Karnataka HC directs to follow SC Ruling

Kalika Krupa Vs State of Karnataka (Karnataka High Court) Karnataka High Court addressed a petition challenging the levy of a 12% Forest Development Tax (FDT) on timber purchased by the petitioner in a public e-auction. The petitioner argued that this levy, as per sale intimation letters issued by forest authorities, is contrary to law and a previous ruling by the same High Court in the B.Rudragouda case, which declared Section 98A of the Karnataka Forest Act ultra vires. The petitioner sought to quash the tax demand. While the state acknowledged the Rudragouda ruling, they pointed out that th...