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VAT Legal Battle Tightens, As Appeal Court Approves Lagos Joining Battle

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VAT Legal Battle Tightens, As Appeal Court Approves Lagos Joining Battle

The Court docket of Attraction, Abuja Division, on Thursday formally permitted and joined Lagos State Authorities because the third respondent within the legal battle in opposition to the Federal Inland Income Service (FIRS) on the gathering of the controversial Value Added Tax (VAT).

The appellate court docket held that Lagos State established past doubt that it had substantial and adequate rights and curiosity to guard within the income assortment dispute.

VAT Legal Battle Tightens, As Appeal Court Approves Lagos Joining Battle

The Attraction Court docket in a unanimous ruling, ordered that having made Lagos a party in the matter, all processes filed in respect of the swimsuit have to be served on its Legal professional-Basic and Commissioner for Justice as a 3rd respondent to allow the state to answer the enchantment filed by FIRS as required by legislation.

Justice Haruna Simon Tsamani, who delivered the lead ruling, fastened October 7 for continuation of additional listening to within the matter.

He additionally ordered that the matter be moved from Abuja to Port Harcourt Division of the Court docket of Attraction for additional listening to of the case.

The enchantment by the FIRS is in opposition to the August 9, 2021 judgment by Justice Steven Pam of the Federal Excessive Court docket in Port Harcourt, voiding the VAT Act and holding that states as federating items may gather VAT.

A 3-man panel led by Justice Tsanami, after listening to arguments by legal professionals to each events on September 16, had stated they might be told when the ruling is prepared.

Whereas arguing the applying by Lagos State for joinder, its Legal professional-Basic, Moyosore Onigbanjo (SAN) had claimed that his shopper was a crucial celebration as it might be affected by the result of the case.

“From the contents of the appellant’s affidavit, Lagos has been made a crucial celebration within the enchantment by some references to it, and for it to be sure by the ultimate resolution, it ought to be allowed to make defence to allegations in opposition to it,” he stated.

Nevertheless, legal professionals for FIRS and the Legal professional Basic of the Federation, Mahmud Magaji (SAN) and Tijani Gazali (SAN) respectfully argued in any other case and prayed the court docket to not be a part of Lagos.

The 2 states individually canvassed that the order of established order ante belum granted on September 10 in favour of FIRS to proceed the gathering be placed on maintain in view of the enchantment already logged on the Supreme Court docket in opposition to the order.

Lawyer for Rivers State, Chief Ifedayo Adedipe (SAN), in his oral software, pleaded with the appellate to train its energy below Order 4 Rule 6 of the Court docket of Attraction to nominate a Receiver/Supervisor to take custody of the VAT assortment within the curiosity of justice to events within the matter.

Onigbanjo, who stood for his state, toed the trail of Rivers in canvassing that the court docket be honest and simply in pending enchantment.

Justice, Hamma Simon Tsamani had in a brief ruling rejected the request and requested the 2 states to make their request formal by making it in writing.