Forest Entry Fees Constitute Sovereign Government Functions, Not Taxable Tour Operator Services: Gujarat High Court

Case Overview

Case Name: Commissioner of Central Excise And Central Goods And Services Tax Vs Officer of Deputy Conservator of Forests (Gujarat High Court)

Appeal Numbers: R/Tax Appeal No. 505 of 2025 With R/Tax Appeal No. 506 of 2025

Date of Order: 23/04/2026

Court: Gujarat High Court

Background of the Dispute

The Gujarat High Court was called upon to adjudicate a rather unusual set of revenue appeals filed by the Commissioner of Central Excise and Central Goods & Services Tax, Bhavnagar, directed against the office of the Deputy Conservator of Forests, Gir Forest, Sinh Sadan, Sasan, Junagadh. The officer in question functions as the head of the wildlife division in Junagadh district, operating under the Ministry of Forests and Environment, Government of Gujarat.

At the heart of the controversy was the Revenue's contention that the Deputy Conservator of Forests — a designated State Government officer — should be treated as a "Tour Operator" under Section 65(105)(n) of the Finance Act, 1994 (as substituted by the Finance Act, 2008 with effect from 16.05.2008), and consequently subjected to service tax liability on account of entry fees, camera fees, and other visitor charges collected at Sasan Gir.

The Show-Cause Notices and Orders-in-Original

The Revenue issued multiple show-cause notices for the financial years spanning 2009-10 to June 2017, specifically on 10.10.2014, 14.03.2016, and 22.03.2018, alleging that the Deputy Conservator was:

  • Engaged in the business of planning, scheduling, organising, and arranging tours by vehicles for visitors to Gir Forest
  • Covered under Section 65(105)(zzzzw) and Section 65(105)(n) of the Finance Act, 1994
  • In violation of Section 69 of the Finance Act, 1994 read with Rule 4 of the Service Tax Rules, 1994, for failing to obtain service tax registration under the categories of "Accommodation in Hotel" and "Tour Operator"

Adjudication Outcomes

The adjudicating authority passed three Orders-in-Original:

  1. Order-in-Original dated 06.11.2015 — confirming service tax demand with interest under Section 75 of the Finance Act, 1994, and imposing penalty under Section 77(1)(a) of the Finance Act, 1994
  2. Order-in-Original dated 28.02.2017 — confirming similar demands
  3. Order-in-Original dated 03.05.2019 — the substantive order holding that the Deputy Conservator of Forests falls within the category of "Tour Operator" under Section 65(n)(105) of the Finance Act, 1994, and quantifying the total service tax liability at Rs. 3,44,77,774/- recoverable under Section 73(2) of the Finance Act, 1994, along with interest under Section 75