The Federal Inland Revenue Service, FIRS, has urged the Tax Appeal Tribunal to join the Nigerian Customs Service, NSC, as defendants in the N3.5 million tax dispute with Orchid Nigeria Ltd.
Orchid, an Abuja-based company, had sued the NCS and the FIRS at the tribunal sitting in Abuja over non-refund of N3.5 million Value Added Tax, VAT.
It alleged that the NCS and FIRS erroneously charged VAT on the Advance Simulator Systems imported for the training of students at the Maritime Academy of Nigeria, Oron, Akwa Ibom. Counsel to Orchid, Mr Obi Nwakor, said that under the first schedule of the VAT Law of 2007 (as amended), books and educational materials were exempted from VAT. The FIRS, in a motion filed by its counsel, Mr Bright Igbinosa, sought the court’s order for the NCS Board to be joined as a party in the suit.
Igbinosa said that “the interest of the case would not be reached, if NCS Board is not joined as a party in this appeal.”
The counsel further stated that “the interest of the respondent will be hugely prejudiced if NCS board, being the body that issued the disputed assessment, is not made a party in this case”. He noted that “the NCS was initially in the matter before its name was struck out on procedural ground; and that NSC board had also filed its defence in the matter”.
The parties had agreed on an out-of-court settlement before the NCS at the last adjournment rescinded its decision, sought and granted a relief to be struck out of the case on procedural grounds.
Consequently, the Acting Chairman of the Tribunal, Mr Nnamdi Ibegbu, adjourned the case but did not fix a date for ruling. Ibegbu said that hearing notices would be issued to all parties informing them on the date the tribunal has fixed.
Orchid, an Abuja-based company, had sued the NCS and the FIRS at the tribunal sitting in Abuja over non-refund of N3.5 million Value Added Tax, VAT.
It alleged that the NCS and FIRS erroneously charged VAT on the Advance Simulator Systems imported for the training of students at the Maritime Academy of Nigeria, Oron, Akwa Ibom. Counsel to Orchid, Mr Obi Nwakor, said that under the first schedule of the VAT Law of 2007 (as amended), books and educational materials were exempted from VAT. The FIRS, in a motion filed by its counsel, Mr Bright Igbinosa, sought the court’s order for the NCS Board to be joined as a party in the suit.
Igbinosa said that “the interest of the case would not be reached, if NCS Board is not joined as a party in this appeal.”
The counsel further stated that “the interest of the respondent will be hugely prejudiced if NCS board, being the body that issued the disputed assessment, is not made a party in this case”. He noted that “the NCS was initially in the matter before its name was struck out on procedural ground; and that NSC board had also filed its defence in the matter”.
The parties had agreed on an out-of-court settlement before the NCS at the last adjournment rescinded its decision, sought and granted a relief to be struck out of the case on procedural grounds.
Consequently, the Acting Chairman of the Tribunal, Mr Nnamdi Ibegbu, adjourned the case but did not fix a date for ruling. Ibegbu said that hearing notices would be issued to all parties informing them on the date the tribunal has fixed.
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