Abuja Court Sets Aside Tax Appeal Tribunal Judgment Against AEDC, Orders Retrial
The Federal High Court, Abuja, on Monday nullified the judgment of the Tax Appeal Tribunal (TAT), which had directed Abuja Electricity Distribution Plc (AEDC) to pay the Federal Inland Revenue Service (FIRS) ₦5,314,665,952 in alleged Value Added Tax (VAT) and Withholding Tax (WHT) liabilities dating back to 2013.
Delivering judgment in Suit No: FHC/ABJ/TA/01/24, Justice Umar Mohammed held that the tribunal’s decision was tainted by bias and a breach of fair hearing, thereby vitiating the entire proceedings. The court consequently remitted the matter back to the tribunal for retrial.
AEDC had challenged the December 14, 2023, decision of the TAT, arguing that enforcement of the alleged liabilities would jeopardise electricity supply to millions of consumers in Kogi, Nasarawa, Niger States and the Federal Capital Territory.
The company further contended that one of the tribunal members, Hon. Ajayi Julius Bamidele, had previously served as a senior staff of the FIRS and was directly involved in tax audits relating to AEDC. This, it argued, raised a clear likelihood of bias.
Justice Umar noted that AEDC’s deposition, supported by evidence from KPMG Advisory Services, established that Mr. Bamidele had coordinated FIRS tax audits during the relevant period. The judge emphasised that this fact was not controverted by the FIRS in its counter‑affidavit.
Citing the principle of natural justice, the court held that no person may adjudicate in a matter where they have a vested interest or prior involvement. Justice Umar stressed that “a taint of bias destroys the integrity of proceedings,” and once fair hearing is compromised, the decision becomes null and void regardless of its merits.
The judgment of the Tax Appeal Tribunal in Suit No: TAT/ABJ/APP/330/2022 was set aside. The case file was remitted to the tribunal for retrial before a properly constituted panel.
The dispute arose from a tax investigation conducted by FIRS, in conjunction with the EFCC, covering AEDC’s records for 2013–2017. The tribunal had earlier ordered AEDC to pay: ₦4,534,358,874 as VAT liability, ₦780,307,078 as WHT liability, and ₦100,000 as costs in favour of FIRS.
With the Federal High Court’s ruling, the entire proceedings and verdict of the tribunal now stand reversed, pending retrial.
