Confiscation and penalty for wrongful Cenvat credit: goods liable and penalties attach for fraudulent or wilful misuse Wrongful taking or utilization of Cenvat credit for inputs, capital goods, or input services results in confiscation of the goods and imposition of penalties; enhanced penalties attach where credit is taken or used by fraud, wilful misstatement, collusion, suppression of facts or deliberate contraventions with intent to evade duty or service tax, and the manufacturer or provider of output services may be separately liable.