CENVAT credit misuse triggers confiscation and penalties, with enhanced sanctions for fraudulent or deliberate evasion. Rule 15 treats wrongful taking or utilisation of CENVAT credit for inputs, capital goods, or input services as grounds for confiscation of goods and imposition of penalties under the Excise Act or Finance Act; fraud, collusion, wilful mis-statement or suppression of facts attracts enhanced penalties against manufacturers or service providers. Any order for confiscation or penalty must be issued by the prescribed administrative officer and comply with the principles of natural justice.