Peace Mass Transit Limited V. Federal Capital Territory & Ors (2014)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

AMIRU SANUSI, OFR, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of the High Court of the Federal Capital Territory, sitting in Gwagwalada, Abuja (the lower court for short) delivered by Hon. Justice M. Balami on 21st day of July, 2010.

The brief facts of the instant case are that the Appellant herein, as plaintiff at the lower court, by an original summons on 4/10/2009 commenced an action against, the Respondents as defendants thereat. In the said originating summons, the Appellant/Plaintiff presented the following questions for the trial court’s determination, to wit-

“1. Whether the defendants can collect taxes, levies and tolls outside the area specified in part 1 Taxes and Levies to be collected by the Governments Taxes and Levies of (Approved List for collection) Act 1998, which now form the provision of Schedule IV Part III of the 1999 Constitution of the Federal Republic of Nigeria.

2 Whether the 1st defendant’s letter of introduction of the levy/rate dated the 14th day of September, 2009 and another letter dated the 26th day of September, 2009 and served on the plaintiff. Private Motor Park and loading bay at Utako, Abuja is not in conflict with the provision of Part III, of the 1999 Constitution of the Federal Republic of Nigeria.

3. Whether it is not the joint tax board that is the body charged under the provision of Nigeria Tax Law to harmonies (sic) the administration of tax across the Federation.

4.Whether the defendants have the power and capacity of (sic) legislate, determine and demand whatsoever, taxes, levies and rate they deem fit from time to time outside the provision of part III taxes and levies to be collected by Government taxes and levies (approved list for collection).

The reliefs sought by the Appellant are as follows:

I. A Declaration that the imposition, demand and collection of approved rate of fifty (N50) Naira per passenger levy in the Plaintiffs private parks and loading bay at Utako Abuja and other parts of Abuja is illegal tax, ultra vires, the Taxes and Levies Approved List of Collection Act.

II. A Declaration that the revenue franchise granted the 1st defendant by the FCT Minister regarding insurance and manifest levy is illegal and ultra vires the Taxes Levies Approved List for Collection Act No.2 of 1998.

III. A Declaration that the use of agents, men of the Nigeria Police Force in imposing, demanding and collecting the manifest and insurance levy is illegal and ultra vires the Taxes and Levies Approved List for Collection Act No. 21.

IV. An order of perpetual injunction restraining the defendants, their agents, privies and any other person acting through them from imposing demanding and collecting illegal tolls, ticket, and imposed rate of fifty (N50) Naira per passenger levy on the plaintiff’s Buses operating in the plaintiff’s Private Parks and loading bay in Utako Abuja and other parts of Abuja.

The Appellant’s originating summons was supported by 15 paragraphs affidavit and a written address of counsel. Also attached to the originating summons are four documentary exhibits to wit:

i. Exhibit ‘A’ – Letter dated 14/9/2009

ii. Exhibit ‘B’ – Letter dated 12/10/2009