VAT: Appeal Court orders Rivers, FIRS to maintain status quo



  Court of Appeal, Abuja Division, on Friday ordered Rivers Government, Federal Inland Revenue Service (FIRS) and the Attorney-General of the Federation to maintain status quo, pending the hearing and determination of applications in respect of Valued Added Tax (VAT).

Federal High Court, Harcourt, had on Aug. 9 declared that was Rivers Government, and not FIRS that should collect VAT and Personal Income Tax in that state. three-man panel of Appeal Court justices by Justice Hassan Tsammani ordered all parties to maintain status quo and refrain from taking any action that would give effect to judgment of Federal High Court, Harcourt.Justice Tsammani held that since all parties in matter had submitted themselves court, was proper and the law for the court to preserve the res (subject matter) from being rendered nugatory.

Consequently, the court held that parties should refrain from giving effect to the judgment of the trial court in Harcourt pending the hearing and determination of the application of the FIRS to stay execution of the trial court’s judgment.Parties are also to maintain status quo pending the hearing  of an application by the Attorney-General of Lagos State to be joined as a party in the matter.Counsel to the appellant/applicant, Mr Mahmud Magaji (SAN), made an oral application for an order that status quo be maintained pending the hearing and determination of the motion for injunction and stay.

However, Mr Emmanuel Ukala (SAN), counsel to Rivers government, and Mr Oyosore Onigbanjo (SAN), counsel to Lagos State Government, both opposed the application for status quo.Mr Tijani Ghazali (SAN), who represented the attorney-general for his part, supported the application for status quo to be maintained.

The applicants have been given two days to file their written addresses in respect to the pending applications  just as the respondents have also been given two days to file, and the applicant has one day to reply on points of law.The matter has been adjourned until Sept. 16. (NAN)