The Supreme Court has struck out the suit filed by the Lagos State Government seeking to gain control of collection of Valued Added Tax (VAT) on goods consumed in the state.
The apex court, in a unanimous judgment of its full panel of Justices, stated that it lacked the jurisdiction to entertain the subject matter in view of powers vested in the Federal High Court by the 1999 Constitution of Federal Republic of Nigeria as amended.
Delivering the lead judgment, Justice Mahmud Mohammed also held that the suit was an abuse of court process. He stated while ruling on preliminary objection filed by the federal government who is the first respondent to the suit that the Supreme Court lacks jurisdiction.
“From the undisputed facts on the pending matters, the plaintiff has, at the High Court and the Court of Appeal, listed in Paragraphs 15 and 17 of the affidavit in support of the originating summons seeking the declaratory reliefs touching on the power of the National Assembly to legislate on certain provisions of the Value Added Tax Act”, Justice Mohammed said.
“Some of the reliefs had been already granted or refused by those courts, resulting in pending appeals at the Court of Appeal. The action of the plaintiff in refusing to appeal against that judgment of the court of Appeal of 13th July 2007 affirming the decision of the Federal High Court on the validity or otherwise of the provisions of the Value Added Tax Act complained of, only to file a fresh action in this court after more than one year of the delivery of judgment by the Court of Appeal seeking the same reliefs sought at the High Court and Court of Appeal is certainly an abuse of the process of this court and I so hold:
“In the final analysis, I am of the strong view that the preliminary objection of the 1st Defendant must succeed on both grounds deserving to be upheld and accordingly I hereby uphold the same”.
He said that the preliminary objection succeeded on both grounds and that the appropriate order to make is to strike out the suit for lack of jurisdiction.
He said that the objection, having succeeded the court, could not proceed further to consider the questions raised by Lagos government for determination.
Other Justices on the panel are Justice John Afolabi Fabiyi, Justice Nwali Sylvester Ngwuta, Justice Mary Ukaego Peter-Odili, Justice Musa Dattijo Muhammad, Justice Kudirat Motonmori Olatunkobo Kekere-Ekun and Justice John Inyang Okoro agreed with the lead judgment.
Attorney General of Lagos had on 20th February 2008 instituted the action against Attorney General of the Federation and Attorney Generals of 35 other state governments, claiming that the House of Assembly of Lagos is the body entitled, to the exclusion any other Legislative Body, to enact laws with regard to the imposition and collection of tax on the supply of all goods and services within the Lagos State.
Lagos State government also asked the apex court to determine whether upon coming into effect of the Constitution of the Federal Republic of Nigeria 1999, the Value Added Tax Act is an existing law within the meaning of Section 315 of the Constitution, being a Federal Legislation, which is deemed to be an Act of the National Assembly.
It also sought the declaration that the Value Added Tax Act Cap VI laws of the Federal Republic of Nigeria 2004 is, to the extent that it provides for the collection of taxes or goods and services in Lagos State, unconstitutional and void.
