Continuous Supply of goods – Sec 2(32)
“continuous supply of goods” means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify;
- Examples of continuous supply of goods are:
- Open purchase orders with an understanding of fortnightly billing;
- VMI (vendor managed inventory) where the agreed periodicity for billing is, say, monthly/ fortnightly etc.;
- Supply of gases through pipeline with a weekly billing schedule;
- Supply of say, 5 litre water cans on an as and when required basis with a frequency of monthly billing under a contract.