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From Godwin Tsa, Abuja
Lagos State Government has been joined as a respondent in the legal battle against the Federal Inland Revenue Service (FIRS) on the collection of Value Added Tax (VAT) by the Abuja division of the Court of Appeal.
Ruling on the motion for joinder filed before it, the appellate court held that Lagos has established beyond doubt that it has substantal and sufficient legal right and interest to protect in the revenue collection dispute.
In a unanimous ruling, the court ordered that all processes filed in respect of the suit be served on Lagos as a third respondent to enable the state respond as required by law to the appeal filed by FIRS.
Justice Haruna Tsamani who delivered the lead ruling fixed October 7 for the continuation of further hearng in the matter.
He also ordered that the matter be moved from Abuja to Port Harcourt division of the Court of Appeal for further hearing of the case.
The appeal by the FIRS is against the August 9 judgment by Justice Steven Pam of the Federal High Court in Port Harcourt, voiding the Value Added Tax (VAT) Act and holding the states could collect VAT.
A three-man panel, led by Justice Haruna Simon Tsanami, after listening to arguments by lawyers to parties on September 16, said they would be informed when the ruling was ready.
In arguing Lagos’ application, the state’s Attorney General, Moyosore Onigbanjo (SAN) said his client was a necessary party as it would be affected by the outcome of the case.
Lawyer to Rivers State, Ifedayo Adedipe (SAN) agreed with Onigbajo and urged the court to join Lagos while lawyers to FIRS and the Attorney General of the Federation (AGF), Mahmud Magaji (SAN) and Tijani Gazali (SAN) argued otherwise and prayed the court not to join Lagos.
The Court had on September 16 refused to grant the oral application by Rivers and Lagos States for the appointment of Receiver/Manager for the purpose of collecting and keeping VAT in place of the FIRS pending the resolution of all legal disputes in the matter.
The two states separately canvassed that the order of status quo ante belum granted on September 10 in favour of FIRS to continue the collection be put on hold in view of the appeal already logged at the Supreme Court against the order.
Counsel to Rivers State Chief Ifedayo Adedipe SAN in his oral application pleaded with the appellate to exercise its power under Order 4 Rule 6 of the Court of Appeal to appoint a Receiver/Manager to take custody of the VAT collection in the interest of justice to parties in the matter.
