The Court of Appeal Abuja Division on Thursday reserved ruling on the application filed by Lagos state government to join in the controversial Valued Added Tax ( VAT ) collection appeal filed by the Federal Inland Revenue Service (FIRS) against the judgement of Federal High Court, Port Harcourt delivered on August 9.
Justice Haruna Tsanammi, the presiding Justice of 3-man panel reserved ruling after parties – Lagos State, Rivers State which is sole respondent and Attorney General of the Federation and FIRS have argued the joinder application filed by the Attorney General of Lagos state.
While Rivers State did.not oppose Lagos State application for joinder , Attorney General of the Federation of Nigeria whose written address was struck out and FIRS vehemently opposed the application.
M.J Onibanjo, the Attorney General of Lagos state outline reasons why it is necessary to join Lagos State government that has also enacted law empowering it to collect VAT .
He told the court that the application was essentially seeking leave for Lagos state to be joined as respondent in the appeal.
He adopted all his processes and urged the court to allow the applicant to be joined.
Adumbrating, the Lagos AG posited that the principle of joinder application is that the party seeking to be joined is a necessary party, and the party’s interest will be legally or financially affected by the outcome of the legal action.
Thirdly, the Lagos AG submitted that the party seeking to be joined will be bound by the decision arising from the action.
He argued that the Constitution empowers States as federating units to collect taxes, insisting that the Federal Inland Revenue Service themselves in their counter affidavit recognized that Lagos state is an interested party.
The appellant (FIRS), according to Onibanjo made allegations against Lagos state government, and therefore it was not out of place for the applicant to be joined.
He argued further that in accordance with Section 36 of Constitution, Lagos state should be accorded an opportunity to defend the allegations in the spirit of fair hearing.
“You cannot shave a man’s head in his absence ” the Lagos AG posited, adding that the joinder application seeks to avoid multiplicity of suits, since Lagos state already has a law empowering it to collect VAT.
“It was in recognition of interest of Lagos state that this court made an order for status quo to be maintained by all parties before it, Onibanjo argued.
“In view of the inconsistencies contained in the counter affidavit of appellant, I pray the court to grant our application in favour of Lagos state, the Attorney General said.
Reacting, Ifedayo Adedipe (SAN), counsel for the 1st respondent (Rivers state) aligned himself with the submission of the Lagos AG.
An effort by the Attorney General of the Federation and Minister of Justice, who is the 2nd respondent to formally oppose the joinder application was refused for being incompetent.
Represented by Tijani Ghazali SAN, an acting Director Civil Appeals, Federal Ministry of Justice, the court agreed with the objection raised the Lagos AG that the AGF filed his counter affidavit and purportedly written address out of time and failed to regularize same despite the court order
On his part, Mahmud Magaji (SAN) counsel to the appellant urged the court to refuse Lagos state government application because the judgment did not mention Lagos State. But his attention was drawn to his supporting counter affidavit by the Court ,he apologized .