High Court of Karnataka Division Bench Hears Batch of Writ Petitions Challenging the Validity of State Notification Imposing Forest Development Tax on Mining Leases. The Petitioners Seek Declaration that the Notification is Ultra Vires the Forest (Conservation) Act, 1980 and the Constitution.

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

Whether the notification dated 16.08.2008 issued under Section 98A of the Karnataka Forest Act, 1963 is ultra vires Article 246 read with Entry 54 of the Union List, and whether forest development tax can be demanded without prior approval under the Forest (Conservation) Act, 1980.

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Case Details

2015 LawText (KAR) (12) 24

Writ Petition No. 2642/2009 (GM-MM-S) c/w 44793/2013, 13595/2008 and other connected writ petitions

2015-12-03

Subhro Kamal Mukherjee, B.V. Nagarathna

K. Raghavacharyulu, D.R. Ravishankar, Udaya Holla, K.N. Phanindra, D.L.N. Rao, S.R. Anuradha, L.M. Chidanandayya, K.N. Srinivasa; for respondents: Prof. Ravivarma Kumar, Advocate General, A.S. Ponnanna, Additional Advocate General, Y.H. Vijay Kumar, Additional Government Advocate

National Mineral Development Corporation Limited (NMDC Ltd.), Vedanta Limited, Federation of Indian Mineral Industries and others

State of Karnataka, Deputy Conservator of Forest, Bellary Division, and others

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Nature of Litigation

Challenge to constitutional validity and legality of state notification and demand notices imposing forest development tax on mining leases.

Remedy Sought

Petitioners sought to quash the notification dated 16.08.2008 and demand notices, and to declare the notification ultra vires and inapplicable.

Filing Reason

State government issued notification under Section 98A of Karnataka Forest Act, 1963 imposing forest development tax on mining leases; petitioners contended that prior central approval under Forest (Conservation) Act, 1980 was required and that entry-54 of Union List vests control over mines with Parliament, making state levy unconstitutional.

Issues

Whether the notification dated 16.08.2008 issued under Section 98A of the Karnataka Forest Act, 1963 is ultra vires Article 246 read with Entry 54 of Union List. Whether forest development tax can be demanded from mining lessees without prior approval of the Central Government under Section 2 of the Forest (Conservation) Act, 1980. Whether Section 98A itself is unconstitutional.

Acts & Sections

  • Constitution of India: Article 246, Seventh Schedule List I Entry 54
  • Karnataka Forest Act, 1963: Section 98A
  • Forest (Conservation) Act, 1980: Section 2
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