CST: Open Purchase Orders are ‘standing offers’ & not confirmed ‘agreement to sell’

BASF India Ltd. Vs State of Karnataka (Karnataka High Court) Karnataka High Court held that Open Purchase Orders are only standing offers and do not constitute a confirmed ‘Agreement to sell’ and movement of goods are mere stock transfers. Facts- Petitioner manufactures automotive paints for original equipment manufacturers and supplies to Tata Motors, Mahindra and Mahindra, Maruti Udyog Ltd., etc., who procure raw materials on just-in-time (JIT) basis. To cater to their needs, petitioner has developed a business model to ensure that stock is maintained at warehouses located near t...