The Supreme Court, yesterday, declined jurisdiction to adjudicate on a
suit that was filed before it by the Lagos State government,
challenging the powers of the Federal Government to assess and collect
taxes on the supply of goods and services rendered within the state.
A
seven-man panel of Justices of the apex court, in their unanimous
judgment, dismissed the suit on the premise that the subject matter
bothered on acts of a federal agency, saying in such cases, the Supreme
Court, lacks the powers to invoke its original jurisdiction as it was
prayed to do by the Lagos state government.
Specifically, the
Lagos State Government had in the suit which was filed by its Attorney
General, prayed the Supreme Court to abolish the Value Added Tax Act,
which it said infringed on its power to assess and collect taxes on the
supply of goods and services within its territory.
It further
asked the court to declare that the VAT Act was outside the legislative
competence of the National Assembly and is therefore unconstitutional,
null and void and of no effect whatsoever.
Besides, Lagos state,
prayed the apex court to invoke section 22 of the Supreme Court Act, and
determine all the substantive issues it raised in the suit.
However,
the federal government, in a preliminary objection it filed against the
suit, insisted that the apex court was bereft of the jurisdiction to
entertain the matter, even as it accused Lagos state of abusing the
judicial process.
FG, alleged that Lagos state had filed the same suit before different courts, as well as, sought for the same reliefs.
Meanwhile,
in the lead judgment prepared by Justice M. D. Mohammed, the Supreme
Court, upheld the objection by FG, describing the suit as an abuse of
court process.
The panel, held that instead of appealing previous
judgments of the lower courts on the matter, the plaintiff, approached
the apex court with the request that it should conduct de-novo (fresh)
hearing on the case.
The apex court therefore branded the suit as “an
abuse of court process in the extreme,” and struck it out, adding that
the action of the plaintiff amounted to “forum shopping.”
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