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<h1>Duty payment and credit utilization upheld for Maltova & Viva products</h1> <h3>JAGATJIT INDUSTRIES LIMITED Versus COLLECTOR OF C. EX., CHANDIGARH</h3> JAGATJIT INDUSTRIES LIMITED Versus COLLECTOR OF C. EX., CHANDIGARH - 1998 (99) E.L.T. 509 (Tribunal) Issues:1. Whether duty payment on malt extract and utilization of duty credit for final products were valid.2. Interpretation of conditional exemption for captively consumed goods.Analysis:1. The appeals involved a dispute regarding duty demands for various months, where the appellants were manufacturing food preparations like Maltova and Viva, utilizing malt extract in the process. The department contended that since malt extract was captively consumed and exempt, duty payment on it was irregular. The Assistant Collector and Collector (Appeals) upheld this view, leading to the appeals. The appellants argued that they paid duty on malt extract and used the credit for final products, seeking a refund. They relied on a Tribunal decision in Polychem Limited to support their case. The Tribunal analyzed the issue and found that the exemption was conditional for captively consumed goods, similar to the Polychem case. Consequently, the appellants were deemed to have rightly paid duty on malt extract and used the credit for Maltova/Viva, leading to allowing the appeals with appropriate relief.2. The crucial point of contention was whether the appellants had the option to choose between exemption and duty payment for captively consumed goods. The Tribunal determined that the exemption was conditional, applying the same reasoning as in a previous case involving Polychem Limited. By following the ratio of that judgment, the Tribunal concluded that the appellants correctly paid duty on malt extract and utilized the duty credit for the final products, Maltova and Viva. As a result, the appeals were allowed, granting relief to the appellants in line with the law.