Bengaluru | Dec 04, 2015: In a judgment that makes the State’s treasury poorer by several hundred crores, the Karnataka High Court on Thursday declared that private mining or quarrying lease-holders in forest areas are not liable to collect Forest Development Tax (FDT) when they dispose of iron ore and other minerals as forest produce by sale or otherwise. However, the court held that the legislature was competent to make a provision for the levy of FDT under the Karnataka Forest Act. But FDT, the court said, could be levied only on the purchasers, who buy minerals directly from the State government or from a corporation, owned or controlled by the State government.

A Division Bench comprising Acting Chief Justice Subhro Kamal Mukherjee and Justice B.V. Nagarathna delivered the verdict while disposing of a batch of petitions filed by several major mining companies that had questioned the competency of the State to levy FDT and the demand notices issued to them for remittance of FDT.

(Source: http://www.thehindu.com/)