PRINCIPLE STATEMENT

Section 17(3) of the Act did not exempt disputed bills from its operation; considerations about whether bills are disputed are completely irrelevant to applications for taxation made outside the 12-month period from bill delivery.

RATIO DECIDENDI (SOURCE)

Per Ogwuegbu, JSC, in Chuka Okoli & Associates v. Crusader Insurance Co. Nig. Ltd (1994) NLC-2811991(SC) at p. 10; Paras A--B.
"Section 17(3) of the Act did not also exempt disputed bills from its operation. In any case these considerations by the court below are completely irrelevant to the application for taxation made outside the period of twelve months from the delivery of the bill."
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EXPLANATION / SCOPE

The 12-month limitation for taxation applications applies to all bills, including disputed ones. Clients cannot argue that because they disputed the bill (questioned amounts, claimed overcharging), the limitation shouldn’t apply. Dispute doesn’t suspend or extend the limitation period. Once 12 months pass from bill delivery, taxation applications are time-barred regardless of: bill dispute, negotiations, promises to adjust, or ongoing correspondence. The statute’s language admits no exceptions for disputed bills. Courts focus solely on: (1) when was the bill delivered? (2) was the taxation application filed within 12 months? Other considerations are irrelevant to the limitation issue. This rigid approach promotes finality and prevents clients from using disputes to indefinitely delay taxation applications. Clients must act promptly regardless of bill status.

CASES APPLYING THIS PRINCIPLE