The federal government is set to fight the Northern Territory over claims it illegally disturbed an Aboriginal sacred site in Kakadu National Park.
Parks Australia is accused of building a walking track at Gunlom - a cascading waterfall that appeared in the movie Crocodile Dundee - without permission from the Indigenous custodians.
NT Aboriginal Areas Protection Authority filed a criminal charge in September against Parks under the NT's Sacred Sites Act for carrying out uncertified work.
Defence lawyer David Robinson SC on Friday told the NT Local Court that Parks Australia - which is part of the federal government's environment department - intends to plead not guilty to the charge.
The commonwealth attorney-general is listed as an interested party in the case, which is likely to become a constitutional battle.
Parks has previously urged the AAPA to drop the charge, saying it's immune from prosecution "due to the generally understood principles of crown immunity".
AAPA refused.
It alleges that the track was constructed close to a restricted ceremonial feature against the wishes of the World Heritage-listed park's traditional owners and without an authority certificate, which is issued after consultation.
National Parks acting director Jody Swirepik has previously acknowledged the "significant distress" the Gunlom works had caused traditional owners and other members of the community.
"For this, I am genuinely sorry," she said in a letter published on the Parks Australia website in April.
She said Parks was prepared to express contrition and make a public apology about the importance of sacred sites and shortcomings in the process adopted for the Gunlom works.
Ms Swirepik also said the offending section of the Gunlom walking track would be moved and an authority certificate had been sought and obtained.
Before AAPA issues an authority certificate it consults traditional owners about the sites to understand how they should be protected, and what restrictions and conditions should be applied to the proposed works.
The maximum penalty under NT law for carrying work on a sacred site without a certificate is $314,000.
The matter will return to court on August 5.
