Statutory conservation activities are not taxable services when charges are collected only to fund lawful public functions.

Activities undertaken by a statutory forest department in eco-tourism, jungle safari, sightseeing and accommodation were treated as part of its statutory conservation functions under the wildlife law, not as commercial tour operator or short-term accommodation services. The fees were fixed by government and were used for conservation and related welfare purposes, which supported the view that charges collected in discharge of a public authority's legal duties do not by themselves create taxability. On that basis, the demand was held unsustainable and the activities were not taxable as the identified services.

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Issues: Whether the activities undertaken by the statutory forest department in conducting eco-tourism, jungle safari, sightseeing and accommodation facilities amounted to taxable tour operator service or short-term accommodation service.

Analysis: The activities were found to be carried out under the governing wildlife statute as part of the department's statutory role in conservation, eco-system protection and maintenance of tiger habitats. The fees collected were prescribed by the Government and were credited and utilised for conservation and related welfare purposes. In that setting, the Board's clarification on services performed by a sovereign/public authority under law supported the view that such statutory functions do not become taxable merely because charges are collected.

Conclusion: The activities were not taxable as tour operator service or short-term accommodation service, and the demand could not be sustained.

Final Conclusion: The appeal succeeded on merits and the impugned order was set aside with consequential relief.

Ratio Decidendi: Activities performed by a statutory/public authority in discharge of duties imposed by law, with charges collected and used only for the statutory purpose, do not constitute taxable business services merely because consideration is received.

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