KARACHI, June 2: Matters pertaining to evasion of sales tax and tampering of electricity meters installed by the Karachi Electricity Supply Corporation (KESC) fall outside the purview of the Federal Investigation Agency (FIA), the Sindh High Court held on Wednesday.

The ruling came on a petition moved on behalf of M/s Karim and Company, SITE, who manufactured bottles and caps for pharmaceutical products and perfumes, through Advocates Rana M. Shamim and Munawwar Sultana. The concern was closed down on the death of its proprietor, Karim Kurban Ali, by his sons who live in Canada and Britain.

Two former employees of the concern lodged a complaint with the FIA that the late proprietor had evaded sales tax, central excise duty and electricity dues to the tune of Rs 170 million from 1995 to 2004. The agency issued the two sons show-cause notices and asked them to produce the entire record relating to the period.

Complaining of harassment, the proprietor's sons invoked the writ jurisdiction of the high court. Their counsel argued before a division bench that FIA Act of 1974 did not empower the agency to entertain or investigate matters relating to sales tax or central excise duty. The enactments dealing with sales tax and central excise duty cast exclusive jurisdiction on the collectorate in this behalf.

The bench, which consisted of Justices Shabbir Ahmed and Khilji Arif Hussain, ordered that the agency would confine itself to inquiry/investigation with regard to the allegation of fake challan submitted to the National Bank of Pakistan whereby a credit or debit entry has been recorded in the account. The agency shall not investigate the matter with regard to sales tax or tampering of electricity meter installed by the KESC, the bench directed.