Answer
When Krishna speaks about the mind, intelligence, and senses—such as in the Bhagavad Gita—it may appear that these are active, conscious elements. But actually, in themselves, even the mind and intelligence are jada (inert, matter).
What gives them life and function is prāṇa-śakti—the living energy. In our present condition, the mind, intelligence, and senses are all energized by this prāṇa-śakti. It is this living force that animates them and allows experience, desire, and action to take place.
Now, where does lust (kāma) reside? If you consider a dead body, all the organs are still present—the eyes, brain, and nervous system—but there is no lust, no desire. Why? Because the living force is absent.
Lust is not simply in the physical organs—it is the spirit of enjoyment, and that originates from consciousness. This consciousness belongs to the soul, but in our current state it is contaminated. That contaminated consciousness energizes the mind, intelligence, and senses in a particular way, giving rise to material desires.
So ultimately, it is correct to say that lust resides in the consciousness of the living entity. However, in practical terms, it manifests through the mind, intelligence, and senses—these become the instruments through which desire expresses itself.
This is the kind of “anatomy” described in the Vedic literatures. Just as the physical body has systems—skeletal, muscular, nervous—similarly, there is a subtle system: consciousness energizes everything, and within that consciousness, kāma operates. But desire is not static—it is dynamic. It flows outward through the mind, intelligence, and senses, leading to action and experience.
Now, regarding your question: is this world meant for both material enjoyment and spiritual realization?
Actually, the true purpose is only Krishna’s enjoyment, not ours. But we are not yet ready to live in that pure state. We still have strong desires for self-enjoyment.
In an ideal condition, our desire to enjoy independently should be zero, and our desire to serve Krishna should be 100%. But in our present state, it is mixed. For example, it may be 95% desire for personal enjoyment and 5% desire to serve Krishna.
So this material world becomes a training ground. It allows us to gradually transform:
the desire for self-enjoyment decreases
the desire to serve Krishna increases
As we advance spiritually, this proportion shifts. When one reaches a pure state—even while living in this world—such a person is called jīvan-mukta (liberated while living): 100% desire to serve Krishna, 0% selfish enjoyment.
Until then, there is a kind of duality in our experience. The real struggle of a spiritual practitioner is:
to minimize self-centered enjoyment
to maximize service to Krishna
Through practices like bhakti, unwanted desires (anarthas) gradually diminish. In fact, anartha means “that which has no real value.” Yet we hold onto these things. Spiritual practice helps us release them, and as that happens, devotion becomes stronger and purer.
Regarding higher planets like Svarga-loka: they are not meant for spiritual advancement in a significant way. They primarily offer enhanced material enjoyment—longer life, greater facilities, refined pleasures. For example, beings there may live for thousands of years, allowing extended enjoyment.
But even that is not the ultimate goal. Great teachers like Chaitanya Mahaprabhu have taught that we should not aspire even for heavenly pleasures, but only for pure devotion.