High Court of Karnataka Adjudicates Batch of Writ Petitions Challenging Notification Dated 16.08.2008 Imposing Forest Development Tax. Validity of Notification Questioned on Grounds of Legislative Competence and Consistency with Central Forest Laws.

High Court: Karnataka High Court Bench: BENGALURU
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Issue of Consideration

Whether Section 98A of the Karnataka Forest Act, 1963, and the Notification dated 16.08.2008 are ultra vires the Constitution and the Forest (Conservation) Act, 1980?

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Case Details

2015 LawText (KAR) (12) 1

W.P.No.2642/2009 (GM-MM-S) along with Writ Petition Nos.44793/2013, 13595/2008, 13516/2008, 13654/2008, 13803/2008, 14157/2008, 14802/2008, 30927/2008 and many other connected matters

2015-12-03

Subhro Kamal Mukherjee, Acting Chief Justice, and B.V. Nagarathna, Justice

K. Raghavacharyulu for D.R. Ravishankar; Udaya Holla for K.N. Phanindra; D.L.N. Rao for S.R. Anuradha; L.M. Chidanandayya; K.N. Srinivasa; and Ravivarma Kumar, Advocate General, along with A.S. Ponnanna, Additional Advocate General, and Y.H. Vijay Kumar, Additional Government Advocate for the State

National Mineral Development Corporation Limited (now NMDC Ltd.) and other petitioners including Vedanta Limited, Federation of Indian Mineral Industries, Canara Minerals Private Limited, State Trading Corporation of India Ltd., and others

State of Karnataka, Deputy Conservator of Forest, Bellary Division, and other forest officials

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Nature of Litigation

Challenge to constitutional validity of notification imposing forest development tax

Remedy Sought

Petitioners seek to quash the notification dated 16.08.2008 and subsequent demand notices, and a declaration that the notification is ultra vires the Constitution and the Forest (Conservation) Act, 1980

Filing Reason

Notification imposed tax on minerals extracted from forest lands, allegedly beyond State’s legislative competence and contrary to central forest conservation law

Issues

Whether Section 98A of the Karnataka Forest Act, 1963 and the Notification dated 16.08.2008 are ultra vires Article 246 read with Entry 54 of List I of the Seventh Schedule of the Constitution? Whether the State Legislature has legislative competence to impose forest development tax on minerals? Whether the Notification violates the provisions of the Forest (Conservation) Act, 1980?

Procedural History

The writ petitions were filed between 2008 and 2013 challenging the notification dated 16.08.2008 and demand notices. They were consolidated and heard together. Final arguments were heard and judgment was reserved/passed on 03-12-2015.

Acts & Sections

  • Karnataka Forest Act, 1963: Section 98A
  • Forest (Conservation) Act, 1980:
  • Constitution of India: Articles 226, 227, 246, Entry 54 of List I (Seventh Schedule)
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High Court High Court of Karnataka Adjudicates Batch of Writ Petitions Challenging Notification Dated 16.08.2008 Imposing Forest Development Tax. Validity of Notification Questioned on Grounds of Legislative Competence and Consistency with Central Forest Laws.
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