THE Abuja Division of the Court of Appeal on Thursday formally permitted and joined Lagos State Government as the third respondent in the legal battle against the Federal Inland Revenue Service on the collection of the controversial Value Added Tax.

The appellate court held that Lagos State established beyond doubt that it had substantial and sufficient rights and interest to protect in the revenue collection dispute.

The Appeal Court in a unanimous ruling, ordered that having made Lagos a party in the matter, all processes filed in respect of the suit must be served on its Attorney-General and Commissioner for Justice as a third respondent to enable the state to respond to the appeal filed by FIRS as required by law.

Justice Haruna Simon Tsamani, who delivered the lead ruling, fixed October 7 for continuation of further hearing in the matter.

He also ordered that the matter be moved from Abuja to Port Harcourt Division of the Court of Appeal for further hearing of the case.

The appeal by the FIRS is against the August 9, 2021 judgment by Justice Steven Pam of the Federal High Court in Port Harcourt, voiding the VAT Act and holding that states as federating units could collect VAT.

A three-man panel led by Justice Tsanami, after listening to arguments by lawyers to both parties on September 16, had said they would be informed when the ruling is ready.

While arguing the application by Lagos State for joinder, its Attorney-General, Moyosore Onigbanjo (SAN) had claimed that his client was a necessary party as it would be affected by the outcome of the case.

“From the contents of the appellant’s affidavit, Lagos has been made a necessary party in the appeal by some references to it, and for it to be bound by the final decision, it should be allowed to make defence to allegations against it,” he said.

Lawyer for Rivers State, Ifedayo Adedipe (SAN), agreed with Onigbajo and urged the court to join Lagos.

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However, lawyers for FIRS and the Attorney General of the Federation, Mahmud Magaji (SAN) and Tijani Gazali (SAN) respectfully argued otherwise and prayed the court not to join Lagos.

The two states separately canvassed that the order of status quo ante belum granted on September 10 in favour of FIRS to continue the collection be put on hold in view of the appeal already logged at the Supreme Court against the order.

Lawyer for Rivers State, Chief Ifedayo Adedipe (SAN), in his oral application, pleaded with the appellate to exercise its power under Order 4 Rule 6 of the Court of Appeal to appoint a Receiver/Manager to take custody of the VAT collection in the interest of justice to parties in the matter.

Onigbanjo, who stood for his state, toed the path of Rivers in canvassing that the court be fair and just in pending appeal.

Justice, Hamma Simon Tsamani had in a  short ruling rejected the request and asked the two states to make their request formal by making it in writing.