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Karnataka High Court
Mahesh Timber Mart vs The State Of Karnataka on 25 February, 2026
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NC: 2026:KHC-D:2978
WP No. 101629 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
DATED THIS THE 25TH DAY OF FEBRUARY, 2026
BEFORE
THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI
WRIT PETITION NO.101629 OF 2026 (GM-FOR)
BETWEEN:
MAHESH TIMBER MART
REP. BY ITS PARTNER-
MAHENDRA S/O. HARILAL PATEL,
AGE. 56 YEARS, OCC. BUSINESS,
PLACE OF BUSINESS AT: PLOT NO.5, UNKAL,
TIMBER YARD, HUBBALLI, TQ. HUBBALLI,
DIST. DHARWAD, KARNATAKA-580031.
...PETITIONER
(BY SRI. HIRANKUMAR PATEL, ADVOCATE)
Digitally signed by
AND:
YASHAVANT
NARAYANKAR
Location: HIGH COURT
1. THE STATE OF KARNATAKA,
OF KARNATAKA REP. BY ITS ADDITIONAL CHIEF SECRETARY,
DEPARTMENT OF FOREST,
ECOLOGY AND ENVIRONMENT,
M.S. BUILDING, DR. AMBEDKAR VEEDHI,
BANGALORE-560 001.
2. THE PRINCIPAL CHIEF
CONSERVATOR OF FORESTS,
ARANAYA BHAVAN, 18TH CROSS,
MALLESHWARAM, BANGALORE-560 003.
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3. THE DEPUTY CONSERVATOR OF FORESTS,
HALIYAL DIVISION, HALIYAL,
DIST. UTTAR KANNADA-584 329.
...RESPONDENTS
(BY SRI. T. HANUMAREDDY, ADDL. GOVT. ADVOCATE)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF CONSTITUTION OF INDIA, PRAYING TO ISSUE WRIT OF
CERTIORARI AND MANDAMUS: A) TO QUASH THE FOREST
DEVELOPMENT TAX (FDT) AS LEVIED BY THE RESPONDENT NO.3
AS IN INVOICE BILL NO.1070101/27-01-2026/64 ON DATED
02.02.2026 I.E. ANNEXURE-B TO REFUND THE SAME TO THE
PETITIONER; AND B) DIRECT THE RESPONDENT NO. 3 NOT TO
LEVY, DEMAND AND COLLECT FOREST DEVELOPMENT TAX (FDT)
IN FUTURE PURCHASE MADE BY THE PETITIONER IN RESPECT
OF TIMBER AND OTHER FOREST PRODUCES AUCTIONED /SOLD
BY THE FOREST DEVELOPMENT IN THE GOVERNMENT TIMBER
DEPOT ACROSS THE STATE OF KARNATAKA; AND C. PASS
SUCH OTHER ORDERS AS THIS HON'BLE COURT DEEMS FIT
UNDER THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE,
IN THE INTEREST 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
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ORAL ORDER
The present writ petition is filed seeking the following
prayers:
"Wherefore it is most respectfully prayed that this
Hon'ble court may kindly be pleased to issue Writ of
certiorari and mandamus:
a) To QUASH the Forest Development Tax (FDT) as
levied by the Respondent No.3 as in Invoice bill
no.1070101/27-01-2026/64 on dated 02/02/2026 i.e.
ANNEXURE-B to refund the same to the petitioner; and
b) Direct the Respondent no. 3 not to levy, demand
and collect Forest Development Tax (FDT) in future
purchase made by the petitioner in respect of timber
and other forest produces auctioned /sold by the
forest development in the Government Timber Depot
across the state of Karnataka; and
c. Pass such other orders as this Hon'ble Court deems
fit under the above facts and circumstances of the
case, in the interest of justice and equity."
2. It is the case of the petitioner that the petitioner is
the managing director of Mysore Mercantile Company Limited
engaged in purchase and sale of timber in the State of
Karnataka and participated in e-auction and accordingly
purchased timber from respondent No.3. It is the case of the
petitioner that the respondent No.3/Authority has levied Forest
Development Tax to an extent of 12% on the wood purchased by
the petitioner through the Invoice Bill dated 02.02.2026, where
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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.
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
AIR 2018 KAR 19
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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:
ORDER
i. Accordingly, the writ petition is disposed of.
ii. All IAs in this petition stands disposed of.
Sd/-
JUSTICE LALITHA KANNEGANTI
YAN, CT: UMD,
List No.: 1 Sl No.: 48
