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ODSG gets court order to seal Nigerian Breweries

By Sunmola Olowookere

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An Akure High court has granted leave to the State government to distrain and/or seal up the Akure Depot of Nigerian Breweries over non payment of tax.
After being served demand notices by the state Ministry of Commerce, Industry and Cooperatives for payment of haulage fee, the company had filed a petition against the Ondo State government and two others.
In the suit, the petitioner claimed that it was not liable to pay haulage of goods as part of its object and business and the respondents cannot therefore demand the payment of haulage fee from it and/or enforce the payment of haulage fees purportedly due to the Respondent from Third parties transport/haulage companies against it.
The Nigerian Breweries therefore sought an order of court restraining the respondents from further demanding for haulage fees from it
It further sought an order of the Court directing and/or mandating the respondents to directly enforce the payment and/or collection of the alleged haulage fees due to them, directly from the third parties, transport companies, engaged by the petitioner to transport its drink to Akure, being the companies that actually engaged in haulage and/or haulage business, under the Taxes and Levies (Approved List for Collection) Act, (Amendment) Order, 2015, to wit: AOP LOGISTICS LIMITED and TASHO NIGERIA LIMITED.
In his reply to the petition filed by the Petitioner-Nigerian Breweries Plc., the legal team of the Ondo State Internal Revenue Service led by Mr. Adebayo Ogunsuyi denied the averments of one Kelly Osadolor who deposed to the Affidavit the petitioner based its claims upon.
It also filed a cross-petition against Nigerian Breweries Plc on the same date counter-claiming against the Nigerian Breweries Plc the following:
The total sum of N169,475,000.00k being the haulage fee for the period of April 2017 to December 2019 which Nigerian Breweries Plc failed to pay despite demand notices served and the cost of litigation.
The respondents also sought an order distraining and/or sealing up the business depot pending the settlement of Nigerian Breweries’ outstanding tax liabilities..
Justice W.A Akintoroye of the High Court, Court 2 dismissed the petition filed by Nigerian Breweries against Ondo State Government and two others on the ground that ODSG has the constitutional right.
The court also ruled that it is the Constitutional duty of Nigerian Breweries Plc to pay haulage fee to the government being the principal to the transport agencies that convey its product.
The Court in its judgment threw out Nigerian Breweries petition for lack of merit and granted the cross-petition of ODSG for the recovery of the sum of N169,175,000.00k being haulage fee owed .
The court also ordered that the Nigerian Breweries Plc depot in Akure be distrained and sealed by ODSG pending the settlement of their tax liabilities to the State Government.

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ODSG gets court order to seal Nigerian Breweries

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