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AG OF LAGOS STATE
V.
AG OF THE FEDERATION & ORS

(2014) JELR 1460 (SC)

Supreme Court 11 Apr 2014 Nigeria
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- The plaintiff is challenging the constitutionality of the Value Added Tax Act and the collection of taxes by the Federal Inland Revenue Services. - The court must determine whether there is a dispute between the federation and the state,

Case Details

Suit Number:SC.20/2008
Judges:MAHMUD MOHAMMED Justice of The Supreme Court of Nigeria JOHN AFOLABI FABIYI Justice of The Supreme Court of Nigeria NWALI SYLVESTER NGWUTA Justice of The Supreme Court of Nigeria MARY UKAEGO PETER ODILI Justice of The Supreme Court of Nigeria MUSA DATTIJO MUHAMMAD Justice of The Supreme Court of Nigeria KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN Justice of The Supreme Court of Nigeria JOHN INYANG OKORO Justice of The Supreme Court of Nigeria
Counsel:Ade Ipaye - Hon. Attorney General of Lagos State, Ministry of Justice with E. O. Sofunde SAN, C. Umensuyi Edosomwan SAN, R. Tarfa SAN, Prof. Y. Osinbajo SAN, Prof. T. Osipitan SAN, M. Igbokwe SAN, D. Akinosan, O. T. Akinsola, L. O. Akangbe, L. Akinsola, J. Jacob, Seun Awolade, Dayo G. Ashonibare, A. M. Kayode, C. Okezie (Miss), P. Tarfa, J. Okah, Y. Killa and C. V. Ofoegbu for the plaintiff. For Appellant AND J. B. Daudu SAN with A. Adedeji, I. C. Okonji and C. E. Ogbozor for the 1st Defendant. Uke Kalu - Hon. Attorney General of Abia State with Val Offia, Omokue U. (C.S.S.) and Chukwu L. Ogechi (S.S.C.) for the 2nd Defendant. Ekenyong Ntetim with Bassey Ekanem for the 4th Defendant. P. A. Afuba - Hon. Attorney General of Anambra State with I. C. Adingwu for the 5th Defendant. E. Y. Kurah for Bauchi State 6th Defendant. Chief F. F. Egele - Hon. Attorney General of Bayelsa State with B. Kingdom and E. Ameh for Bayelsa State 7th Defendant. A. Olaleru for Cross-River State 10th Defendant. C. A. Ajuyah SAN, Hon. Attorney General of Delta State with N. W. Ogbogu, Director Department of Revenue Matters, A. O. Orohorhoro, Esq., Assistant Director, C. O. Abagwu, Esq., Chief State Council, O. P. Ekpemina, Esq., State Senior Counsel, D. C. Atigari, Esq., Senior Counsel and N. B. Emakpor, (Mrs.) State Senior Counsel, for 11th Defendant. Dr. Ben O. Igwenyi - Hon. Attorney General of Ebonyi State with P. M. Awada (D.C.L.) for Ebonyi State, for 12th Defendant. Nnamonso Ekanem with Iniabasi Udobong for Edo State 13th Defendant. F. Omotosho for Ekiti State 14th Defendant. Nduka Ikeyi with Solomon Ejim and Ifeanyi Eeanyi Ezea for Enugu State 15th Defendant. I. M. Njaka with Sunday Olabode and Michael Dunioh for Imo State 17th Defendant. Y. A. H. Ruba, Esq. - Hon. Attorney General of Jigawa State with M. A. Lamin (A.C.S.C.) for Jigawa State., for 18th Defendant D. C. Enwelum for Kaduna State, 19th Defendant. Mukhtar Sani Daneji - Solicitor General Kano State with Dalhatu Yusuf Dada D.D.P.P. for Kano State 20th Defendant. Napoleon O. Idenala for Katsina State 21st Defendant. Muhammad Ibrahim Pama - Director Civil Litigation Katsina State with Ahmadu Rufai Amin - Chief State Counsel Kebbi State 22nd Defendant. Kamaldeen Ajibade - Hon. Attorney General of Kwara State with F. D. Lawal (Mrs.) S. G. Kwara, S. K. Grillo (Mrs), A. D. Civil Litigation, M. J. Orire (Mrs.) (S.S.C.) and O. S. Balogun (S.S.C.) for Kwara State 24th Defendant. Mrs. Abimbola Akeredolu - Hon. Attorney General of Ogun State with Dehinde Dipeolu - S. C. Ogun State Ministry of Justice and Olakunle Agbebi for Ogun State 27th Defendant. O. Oshobi with K. Daudu, O. I. Arasi and O. C. Obayuwana (Miss) for Osun State 29th Defendant. F. B. Lotben (Mrs.) Director Civil Litigation with V. Z. Dadom (Mrs) Deputy Director/Assistant Head of Legal Drafting, Ministry of Justice, for Plateau State 31st Defendant. Worgu Boms - Hon. Attorney General of Rivers State with Dame N. C. Iwegbu D. C. L. Rivers State for Rivers State 32nd Defendant. M. I. Hanafi with D. T. Nwachukwu and H. H. Oloriegbe (Miss) for Yobe State 35th Defendant. Abdul Ahmad with Salisu M. Akwati for Zamfara State 36th Defendant. For Respondent

MUSA DATTIJO MUHAMMAD, JSC (Delivering the Lead Ruling): By an amended Originating summons filed on the 12th day of August, 2009, the plaintiff claims against the defendants thus:-

"That the House of Assembly of Lagos State of Nigeria is the body entitled, to the exclusion of any other legislative body, to enact laws with regard to the imposition and collection of tax on the supply of all goods and services within Lagos State of Nigeria and that the Lagos State of Nigeria, or any agency of the State, is the body entitled, to the exclusion of any other body, to assess and collect such tax, and that the revenue of the Logos State Government has been and continues to be affected by the enforcement of the provisions of the Value Added Tax Act Cap V1 Laws of the Federal Republic of Nigeria, 2004 (hereinafter referred to as 'The VAT ACT'."

In its consideration of the foregoing claim, the plaintiff urges the court to determine the following questions:-

"1. Whether upon the coming into effect …

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