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 the decision is under challenge before the Supreme Court, which has granted an interim order against refunds. The High Court disposed of the writ petition, stating that the demand, collection, and refund of FDT will be subject to the final outcome of related cases pending before the Supreme Court. The respondents are permitted to take further action, including issuing fresh tax demands or acting on already collected FDT, only after the final disposal of these pending matters.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
Heard the learned counsel Sri K.H.Bagi on behalf of the petitioner and learned HCGP for respondents No.1 to 4.
