IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF AUGUST, 2019 BEFORE THE HON’BLE MR. JUSTICE ALOK ARADHE WRIT PETITION No.2414 OF 2019(GM-FOR) BETWEEN:
M/s.NOWFAL TIMBERS & FURNITURE (MSTC/NOWFAL TIMBERS & FURNITURE/93008) (A PROPRIETORSHIP CONCERN) GST REGISTRATION NUMBER: 29ABXPN4084DLZ3 REP. BY ITS PROPRIETOR YOUSUF NERALAKATTE HAVING OFFICE AT 1-121, NERALKATTE, NETLAMUDNNUR NERALKATTE BANTWAL, DAKSHINA KANNADA KARNATAKA STATE-574253 ..PETITIONER (BY SRI SIJI MALAYIL, ADVOCATE) AND:
1.THE STATE OF KARNATAKA REPRESENTED BY ITS PRINCIPAL SECRETARY AND ADDITIONAL CHIEF SECRETARY, DEPARTMENT OF FOREST, ECOLOGY AND ENVIRONMENT, M.S. BUILDING, 4TH FLOOR, DR AMBEDKAR VEEDHI BANGALORE-560001 2.THE DEPUTY CONSERVATOR OF FORESTS RANGE FOREST OFFICE, KUNDAPURA DIVISION KUNDAPURA, KARNATAKA-576201 ..RESPONDENTS (BY SRI VIJAY KUMAR A PATIL, ADDITIONAL GOVERNMENT ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO:
DECLARE THAT THE STATE GOVERNMENT AND ITS AUTHORITIES CANNOT LEVY, DEMAND AND COLLECT, FOREST DEVELOPMENT FEE AT THE RATE OF 12% OF THE SALE CONSIDERATION AMOUNT UNDER SECTION 98 A[1] OF THE KARNATAKA FOREST ACT 1963 IN RESPECT OF THE TIMBER AND OTHER FOREST PRODUCE AUCTIONED/SOLD BY THE FOREST DEPARTMENT IN DIFFERENT GOVERNMENT DEPOTS IN KARNATAKA IN VIEW OF THE JUDGMENT RENDERED BY THE DIVISION BENCH OF THIS HON'BLE COURT ON 04.10.2017 IN W.P.NOS.43937- 938/2016 VIDE ANNEXURE-A AND CONNECTED MATTERS [SRI.B.RUDRAGOUDA AND OTHERS VS STATE OF KARNATAKA AND OTHERS];
DIRECT THE RESPONDENTS STATE GOVERNMENT AND ITS AUTHORITIES TO WAIVE OFF THE ENTIRE AMOUNT OF FOREST DEVELOPMENT FEE LEVIED ON THE PETITIONER AND ITS MEMBERS SINCE THE SAID LEVY AND COLLECTION IS CONTRARY TO THE DIRECTIONS ISSUED BY THE DIVISION BENCH OF THIS HON'BLE COURT IN THE JUDGMENT RENDERED ON 04.10.2017 IN W.P.NOS.43937-938/2016 AND CONNECTED MATTERS;
DIRECT THE R-1 TO EXPEDITIOUSLY CONSIDER THE REPRESENTATION DATED:24.07.2017, 07.10.2017 AND 11.01.2018 SUBMITTED BY FEDERATION OF KARNATAKA TIMBERS VIDE ANNEXURES-E, F, AND G AND TAKE APPROPRIATE ACTION IN ACCORDANCE WITH LAW.
THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING `B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER Mr.Siji Malayil, learned counsel for the petitioner.
Mr.Vijay Kumar A Patil, learned counsel for the respondents.
2. Petition is admitted for hearing.
3. With the consent of the learned counsel for the parties, petition is heard finally.
4. In this petition, petitioner interalia sought for the following reliefs:
“1. Declare that the State Government and its authorities cannot levy, demand and collect, Forest Development Fee at the rate of 12% of the sale consideration amount Under Section 98 A[1] of the Karnataka Forest Act 1963 in respect of the timber and other forest produce auctioned/sold by the Forest Department in different Government Depots in Karnataka in view of the Judgment rendered by the Division Bench of this Hon'ble Court on 04.10.2017 in W.P.Nos.43937-938/2016 vide Annexure-A and connected matters [Sri.B.Rudragouda and Others Vs State of Karnataka and Others];
2. Direct the respondents-State Government and its authorities to waive off the entire amount of Forest Development Fee levied on the petitioner and its members since the said levy and collection is contrary to the directions issued by the Division Bench of this Hon'ble Court in the Judgment rendered On 04.10.2017 in W.P.Nos.43937-938/2016 and connected matters;
(3) Direct the R-1 to expeditiously consider the representation dated:24.07.2017, 07.10.2017 and 11.01.2018 submitted by Federation of Karnataka Timbers Vide Annexures-E, F, and G and take appropriate action in accordance with law.”
5. When the matter is taken up today, Mr.Vijay Kumar A Patil, learned additional Government Advocate fairly submitted that the Division Bench of this Court has struck down levy of `Forest Development Fee’ under the provisions of the Karnataka Forest Act, 1963.
6. Being aggrieved, State Government has filed Special Leave Petition before the Hon’ble Supreme Court which is pending consideration. It is further submitted that the levy of `Forest Development Fee’ shall be subject to decision of the Hon’ble Supreme Court.
7. In view of the aforesaid submission, writ petition is disposed of with a direction that any action for levy and collection of `Forest Development Fee’ shall be taken as per the directions which may be issued by the Hon’ble Supreme Court in the Special Leave Petition which is pending before it.
With the aforesaid direction, petition is disposed of.
Sd/- JUDGE SBN