VAT: FIRS seeks shutout of Lagos from appeal, court reserves ruling
The Abuja Division of the Court of Appeal has reserved ruling on a motion on notice filed by the Lagos State Government seeking to be joined in a suit filed by the Federal Inland Revenue Service (FIRS) over value added tax.
On September 3, Lagos attorney general Moyosore Onigbanjo applied to be joined as a respondent in an appeal filled by the Federal Inland Revenue Service (FIRS) against the judgement of the Rivers Division of the Federal High Court.
At the resumed hearing on Thursday, the FIRS, through its counsel Mohammed Magaji (SAN), prayed the court to discountenance the application of the Lagos State Government.
Mr Magaji argued that Lagos State application was faulty from inception.
But Mr Onigbanjo countered, arguing that Lagos could not be shut out of a matter for which the FIRS has already made allegation against the state.
“Why will they make allegation against Lagos State Government in their processes and won’t allow us to join?” Mr Onigbanjo queried. “You made allegation against us, you then said we should not be joined. Section 36 permits us to come and react.
“No court of equity should take cognisance such submission. If we go by the submission of my friends, it is inevitable that it will lead to another action. An application for joinder seeks to prevent multiplicity of action,” Mr Onigbanjo said.
Arguing further, the Lagos attorney general said the court had already recognised the place of Lagos in the matter in its ruling of September 10.
“Finally, it was in recognition of the interest of Lagos that the court on September 10 ordered even Lagos state to maintain status quo. They argued strenuously for that order to be made. It was the appellant who sought for the order,” he added.
Mr Onigbanjo then presented before the court, the judgement of the Rivers court as exhibit one and notice of appeal filed by FIRS as exhibit two.
The court in a three-member-panel led by Haruna Tsammani reserved ruling, saying it will communicate new date to parties.
On September 10, the appellate court ordered the Rivers and Lagos authorities to stop the collection of Value Added Tax (VAT) pending determination of the application filed by the FIRS.
A three-member panel led by Mr Tsammani ordered that “the status quo ante bellum be maintained.”
The FIRS had in an appeal marked CA/PH/282/2021 sought an injunction pending appeal and a stay of execution of the Rivers court judgement on VAT collection.
Peoples Gazette reported that a Rivers Division of the Federal High Court in a suit marked FHC/PH/CS/149/2020 declared the collection of VAT by the federal government of Nigeria unconstitutional and Rivers the rightful body to receive personal income tax and VAT emanating from the state.
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