Case Law Details
Kandula Raghava Rao Vs State of Karnataka (Karnataka High Court)
Karnataka High Court held that the petitioner therein Amazon, neither seller nor supplier of the product in question could not have been hauled into the proceedings of a crime. Further, without arraigning the Company as an accused, the Directors of the company cannot be hauled into the proceedings.
Facts- The petitioners are Directors of Amazon Seller Service Private Limited, which owns and operates an online market place in the name and style of “Amazon”. It is a market place of ‘E’ commerce. The complainant is the Department of Excise. The Department of Excise purchased certain products from a Company by name “Happy and Healthy Foods” and the purchase is routed through Amazon. Therefore, Amazon in the case at hand is an intermediary, which facilitated the purchase for the Excise Department from the seller “Happy and Healthy Foods”. The Department of Excise registers a crime against the petitioners and other accused, on an allegation that the purchases made by them through Amazon – online market, from the hands of “Happy and Healthy Foods” contained alcoholic bitters by name “Angostura Aromatic Bitters”, which contain 44.7% alcohol in a 200 ml bottle. This was construed to be alcohol that was used for making cocktail and was sold interstate through Amazon – E-market Place without having valid licence from the Department of Excise, State of Karnataka. The further allegation is that, these products were routed through Amazon without paying import duty and additional excise duty. “Happy and Healthy Foods”, the seller is charge sheeted along with the petitioners herein, who are members of Amazon, the E-commerce place, on the allegations of violation of provisions of Excise Act as afore-quoted. The Police, after investigation, have filed a charge sheet against the petitioners. On filing of the charge sheet, the petitioners have knocked the doors of this Court in the subject petition.
Conclusion- This Court following the Judgments rendered by the High Court of Bombay in the case of AMAZON INDIA vs. STATE OF MAHARASHTRA (2021 SCC LONLINE BOM 3631), where the Bombay High Court had held that the petitioner therein Amazon, neither seller nor supplier of the product in question could not have been hauled into the proceedings of a crime and has quashed the impugned proceedings therein against ‘AMAZON INDIA’. Therefore, the said issue whether the proceedings against the intermediary can be initiated, stands covered on all its fours with the reasons rendered in the afore-quoted judgment and further proceedings, if permitted to be continued would become abuse of process of law.
The other issue also goes in favour of the petitioners, Amazon company / Amazon ‘E’ commerce Company is not made an accused in the proceedings. The petitioners are Directors of the Company. Without arraigning the Company as an accused, the Directors of the company cannot be hauled into the proceedings or proceedings against them cannot be permitted to be continued.
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