Merged districts: PHC suspends FIA notices to industrial units

PESHAWAR: The Peshawar High Court has halted notices from the Federal Investigation Agency (FIA) targeting 110 industrial units within the merged districts, formerly known as the Federally Administered Tribal Areas (FATA). The court directed relevant authorities to submit responses to the petitions filed by the industrial unit owners.

During the proceedings, counsel argued that the industrial units were established in the tax-free former FATA and imported raw materials under applicable exemptions. Consumption Certificates, issued by Peshawar's Inland Revenue authorities, certified that the tax-exempt materials had been consumed within the designated area. Once the verification was complete and certificates issued, the post-dated cheques were returned to the units.

After high court intervention and audit completion, the certificates were reinstated, and the cheques returned. The counsel alleged that the Senate Sub-Committee on Narcotics Control claimed that officials issued Consumption Certificates in exchange for substantial money, causing national exchequer losses. The Senate committee referred the matter to the Ministry of Interior, which then handed it to the FIA.

The FIA's Anti-Corruption Unit then issued notices to the 110 units seeking their records. The counsel contended that the FIA notices lacked legal basis, as the allegations pertained to government officials, not the industrial units. They argued that tax investigation should follow prescribed legal procedures and the matter belonged to tax authorities. The court suspended the FIA notices and ordered the relevant authorities to respond.