Used Refractory Bricks Cleared as Scrap not subject to Cenvat Reversal

SAIL's Durgapur Steel Plant used refractory bricks in manufacturing steel products and subsequently cleared the used bricks as waste and scrap without payment of duty. 

Revenue demanded ₹98 lakh, treating the bricks as capital goods and invoking Rule 3(5A) of the Cenvat Credit Rules. 

CESTAT rejected the demand, holding that the refractory bricks were inputs which became waste only after use and therefore were not capital goods.