Hi this is the correct piece of code. I missed AS BEGIN in view definition.

DECLARE @sql varchar(max)

SET @sql='

USE '+@Database1+'

IF EXISTS (SELECT 1 FROM SYS.VIEWS WHERE NAME =''test_view'')

BEGIN

DROP VIEW test_view

PRINT ''VIEW EXISTS''

END'

PRINT @sql

EXEC(@sql)

SET @sql=''

SET @sql='USE '+@Database1+'

GO

CREATE VIEW test_view

AS

BEGIN

SELECT TOP 50 * FROM TEST_TABLE

'

PRINT @sql

EXEC(@SQL)

I am getting error "Incorrect Syntax near GO"