Case Note & Summary
The High Court of Karnataka heard a batch of writ petitions filed by various mining companies, individuals, and an industry association challenging the levy of Forest Development Tax under Section 98A of the Karnataka Forest Act, 1963. The petitioners, including National Mineral Development Corporation Limited (NMDC), Vedanta Limited, and others, sought declarations that the Notification dated 16.08.2008 issued by the State Government and the consequential demand notices were ultra vires the Constitution and beyond the legislative competence of the State. The core grievance was that the imposition of Forest Development Tax on mining leases, particularly those on non-forest lands, violated Article 246 read with Entry 54 of List I of the Seventh Schedule. The petitioners also contended that the provisions of the Forest (Conservation) Act, 1980 were being contravened. The matters were argued before a Division Bench of the High Court, which reserved its judgment on 3rd December 2015.
Issue of Consideration
Whether the Notification dated 27.08.2008 issued under Section 98A of the Karnataka Forest Act, 1963 is ultra vires the Constitution and whether forest development tax can be levied on mining operations?
