AIR 2018 KARNATAKA 19 ::2017 (4) AKR 738

Karnataka High Court

Hon'ble Judge(s): Subhro Kamal Mukherjee , C.J. AND P. S. Dinesh Kumar , J

Constitution of India , Art.14, Art.265, Art.245, Sch.VII List II Entry 54, Sch.VII List II Entry 51, Sch.VII List II Entry 62, Sch.VII List II Entry 66, Sch.VII List III Entry 47— Karnataka Forest Act (5 of 1964) , S.98A— (as amended by Act (23 of 2016)) - Constitutional validity - Levy of Forest Development Tax (FDT) on disposal of forest produce i.e., mineral by State Govt. - In amended provision word 'tax' substituted by word 'fee' - According to State, decision rendered in AIR 1981 Kar 216, holds field as on date and so levy imposed by State, prior to amendment, cannot be anything but 'tax' - State aware of fact that levy of tax held as constitutionally valid in AIR 1981 Kar 216 - State imposing such tax since 1975, which remained in statute book for almost 35 years till amendment in 2016 - Royalty imposed upon extraction of minerals under MMDR Act - Subsequent imposition of levy by change of name from 'tax' to 'fee', impermissible - Contention of State that they were under assumption that levy was 'fee' and not 'tax', liable to be rejected - Amendment Act of 2016, held ultra vires of Constitution. AIR 1981 Kar 216, 2016 (1) AKR 642, Rel. on. Mines and Minerals (Development and Regulation) Act (67 of 1957) , S.2— Evidence Act (1 of 1872) , S.115— (Para 28 36 39 40 ....