Rule 13 - Transfer of CENVAT credit.

Transfer of CENVAT credit permitted when factory and input stocks move with ownership change, subject to accounting and officer approval.

Transfer of CENVAT credit is allowed when a manufacturer's factory is shifted or transferred due to change of ownership, sale, merger, amalgamation, lease, or transfer to a joint venture with transfer of liabilities, provided the stock of inputs (including in-process) is transferred with the factory and inputs on which credit was availed are duly accounted for to the satisfaction of the tax authorities; the transfer must be effected within the prescribed period, which may be extended on sufficient cause and with recorded reasons by a higher tax authority within prescribed limits.