Maritime
Customs Faults N3.5 Million Tax Dispute Settlement
The Nigerian Customs
Service (NCS) has backed-pedalled on the earlier decision to out-of-court settlement of its N3.5 million tax dispute with an Abuja-based company, Orchid Nigeria Ltd.
Orchid had dragged the NCS and the Federal Inland Revenue Service (FIRS) to the Tax Appeal Tribunal in Abuja over non-refund of N3.5million Value Added Tax (VAT).
Orchid 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.
The appellant’s counsel, Mr Obi Nwakor, averred that under the first schedule of the VAT Law No. 102 of 2007 (as amended), books and educational materials were exempted from VAT.
At the last adjournment on March 6 all the parties had agreed to settle out-of-court, the report of which was expected to have been filed on July 22.
There was, however, a mild drama at the resumed hearing on Tuesday when the appellant counsel told the court that nothing had been done on the out-of-court settlement plan.
Nwakor said “all efforts on the settlement came to nothing,” stressing that there was no response from NCS and FIRS regarding the plan.
The NCS, through its counsel Mrs S.I. Bello, informed the court that it had a pending motion filed on July 19 on the case, stressing that the appeal was incompetent.
Bello said there was a notice of preliminary objection filed which drew the attention of the tribunal to the fact that pre-action notice was not issued and served on the parties.
NCS sought a relief to be struck out of the case.
The appellant counsel and Mr Bright Igbinosa, second respondent counsel said they had no objection to the motion and prayed for the adjournment of the case.
The acting chairman of the tribunal, Mr Nnamdi Ibegbu (SAN), said “the tribunal hereby orders that the first respondent (NCS) be struck out from this case in view of the fact that pre-action notice was not served on the respondent”.
He said the case would be adjourned for hearing provided that before hearing date the remaining parties would take appropriate step to ensure that the case proceed in view of the fact that there had been no settlement out-of-court.
“This case is accordingly adjourned to Sept. 5 for hearing,” Ibegbu said.
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