Federal Board of Inland Revenue V. Integrated Data Services Limited (2009)

LawGlobal-Hub Lead Judgment Report

HELEN MORONKEJI OGUNWUMIJU, J.C.A.

This is an appeal against the ruling of Auta J., sitting at the Federal High Court, Benin Division delivered on 21-3-02 in which the learned trial Judge after hearing a motion to decide a point of law proceeded to dismiss the appellant’s claim. The Appellant was the Plaintiff at the lower court and the Respondent was the Defendant.

The facts which led to this appeal are as follows:

On 16/11/2000 the Appellant filed a writ against the Respondent endorsed as follows:-

“1. The Plaintiff’s claim is for N15, 202,397.00 (Fifteen Million, Two Hundred and Two Thousand, Three Hundred and Ninety Seven Naira Only) being unremitted penalty and interest on Value Added Tax (VAT) which accrued as a result of late filing of monthly VAT returns from January 1994 to October 1999.

2. The Total relief which the plaintiff now claims against the Defendant is the sum of N15, 202,397.00 being unremitted Value Added Tax penalty and interest between January 1994 to October 1999 which has now become a debt and payable by the Defendant to the Federal Government of Nigeria plus the cost of prosecuting this action.”

Paragraph 14 of the statement of claim states as follows:

“WHEREOF the plaintiff’s claim against the Defendant is the sum of N15,202,397.00 being unremitted Value Added Tax’s penalty and interest for the period of January 1994 to October 1999. Plus the cost of prosecuting this suit.”

The Respondent filed a statement of defence inclusive of counterclaim as follows:-

“WHEREFORE the Defendant Counter-Claims against the Plaintiff thus:

i. A declaration that the Plaintiff is not entitled to the penalty and interest imposed by the Plaintiff on the defendant as the conditions precedent under the VAT Decree No. 102 of 1993 has not arisen.

ii. A declaration that failure to render monthly Returns does not attract monetary penalty and interest under the VAT Decree No. 102 of 1993.

iii. A declaration that the penalty of “best judgment” Assessment in S. 14 and imposition of penalty and interest in S. 25 both of the VAT Decree No. 102 of 1993 cannot be imposed at the same time for the same neglect or default as it will be amount to double punishment contrary to the Constitution of the Federal Republic of Nigeria, 1999.

ALTERNATIVELY