Section 73/74 of the CGST Act, 2017 – Show Cause Notice – Bus Body Building ––- The petitioner challenged SCN dated 15.12.2020 on the ground that the impugned notice is contrary to the circular No.52/26/2018-GST, dated 09.08.2018. The counsel for the petitioner submitted that the petitioner is engaged in job work service and merely carries on the bodybuilding on the chassis and therefore, the petitioner is not liable to pay tax at proportionate rate of 28% as has been proposed in the impugned SCN. The court observed that the SCN issued under Sections 73 and 74, cannot be said to be without jurisdiction because there is a clarification of CBIC Circular No.52/26/2018-GST dated 09.08.2018. The circulars are binding on the respondents.

Held that:- The Hon’ble High Court directed the petitioner to file a reply before the 4th respondent to the SCN within a period of 60 days. The 4th respondent shall pass an order independently within a period of 30 days thereafter, after considering the applicability of clarification in Circular No. 52/26/2018-GST, dated 09.08.2018.