Open Market - Definition - Law Dictionary Home Dictionary Definition open-market

Definition :

Open market, if the transactions of sale and pur-chase are effected under conditions enabling every person desirous of purchasing the goods in question to place orders with such manufacturing unit and obtain supplies, they will constitute purchases 'from the open market'. The Supreme Court in in this context referred with advantage to the following observations of Swinfen Eady, J. in Inland Revenue Commissioners v. Clay, (1914) 3 KB 466: (1914-1915) All ER Rep 882 (888), where the Court of Appeal had to consider the scope of the expression 'open market' occurring in s. 25(1) of the Finance Act, 1910 (10 Edw 7, c 8): The market is to be the open market, as distinguished from an offer to a limited class only, such as the members of the family. The market is not necessarily an auction-sale. The s. means such amount as the land might be expected to realize if offered under conditions enabling every person desirous of purchasing to come in and make an offer, and if proper steps were taken to advertise the property and let all likely purchasers know that the land is in the market for sale, Ahura Chemical Products Pvt. Ltd. v. Union of India, AIR 1981 SC 1782 (1785): (1981) 4 SCC 277: (1982) 1 SCR 621. (Central Excise and Sale Act, 1944)