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TMI Blog2022 (7) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... tice is contrary to the circular No.52/26/2018-GST, dated 09.08.2018 of the Government of India, Ministry of Finance (Department of Revenue), Central Board of Indirect Taxes and Customs, New Delhi. A Specific reference was drawn to paragraph No. 12 from the said circular, which reads as under:- "12.1. Applicable GST rate for bus body building activity:- Representations have been received seeking clarifications on GST rates on the activity of bus body building. The doubts have arisen on account of the fact that while GST applicable on job work services is 18%, the supply of motor vehicles attracts GST @ 28%. 12.2. Buses (motor vehicles for the transport of ten or more persons, including the driver) fall under headings 8702 and attract 28 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned show cause notice being contrary to the above circular is thus without jurisdiction and is therefore liable to be quashed. 3.The learned counsel for the petitioner further submits that even in the counter, the 4th respondent has admitted in the counter that the petitioner is merely engaged in bodybuilding activity on the chassis supplied by the State Transport Corporation and therefore, the attempt of the respondents is to distinguish above cited circular was unwarranted. It is submitted that the stand of the respondents was clear in the counter and therefore, the respondents will confirm the demand proposed in the show cause notice. 4.Opposing the prayer, the learned counsel for the respondents jointly submits that the writ pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Collector of Central Excise, Vadodra Vs Dhiren Chemical Industries reported in (2002) 2 Supreme Court Cases 127. These circulars are however not binding on the Courts as per the decision of the Hon'ble Supreme Court in the case of Commissioner of Central Excise, Bolpur Vs. Ratan Melting and Wire Industries reported in (2008) 13 SCC 1. 7.Even as the decisions referred by the learned counsel for the respondents, it has been observed that it is true that the circular issued by the CBIC are binding on the authorities, however whether the circular is applicable or not is a matter, which has to be considered on merits of the facts and circumstances of the case. 8.Considering the fact that the circulars are binding on the respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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