54. Non-admissibility of set-off.-

No set-off under any rule shall be admissible in respect of,

(a) purchases of motor vehicles (being passenger vehicles) which are treated by the claimant dealer as capital assets and parts, components and accessories thereof unless the claimant dealer is engaged in the business of transferring the right to use (whether or not for a specified period ) for any purpose in respect of the said vehicles and the expression motor vehicles shall have the same meanings as respectively assigned to them in the Motor Vehicles Act, 1988;

(b) entry, as defined under the Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002 or, as the case may be, purchases of the High Speed Diesel Oil, Aviation Turbine Fuel (Duty paid), Aviation Turbine Fuel (Bonded), Aviation Gasoline (Duty paid), Aviation Gasoline (Bonded) and Petrol unless such motor spirits] are resold or sold in the course of inter-State trade or commerce or in the course of export out of the territory of India or are sent, not by reason of sale, outside the State to any place within India by the claimant dealer to his own place of business, or the place of business of an agent or where the claimant dealer is a commission agent, to the place of business of his principal;

(c) purchase of crude oil as described in section 14 of the Central Sales Tax Act, 1956, when used by an oil refinery for refining;

(d) any purchase of consumables or of goods treated as capital assets by the claimant dealer where the dealer is principally engaged in doing job work or labour work and is not engaged in the business of manufacturing of goods for sale by him and incidental to the business of job work or labour work any waste or scrap goods are obtained and are sold;

(e) any purchase made by any dealer to whom an Entitlement Certificate except the Entitlement Certificate under the New Package Scheme of Incentive for Tourism Projects 1999 to claim incentives by way of exemption from tax or deferment of tax has been granted, being purchases of raw materials as defined in rule 80.

(f) any purchase of goods of incorporeal or intangible nature other than,

(i) items covered by entries 3 and 4 of the Notification issued under entry 39 of SCHEDULE C appended to the Maharashtra Value Added Tax Act, 2002 and SIM cards;

(ii) software in the hands of a dealer who is trading in software;

(iii) Copyright which is resold within twelve months of the date of purchase;

(g) purchases effected by the employer by way of works contract when the contract results in immovable property other than plant and machinery;

(h) purchases of any goods by a dealer, the property in which is not transferred (whether as goods or in some other form) to any other person, which are used in the erection of immovable property other than plant and machinery;

(i) purchases of Indian Made Foreign Liquor or of country Liquor if the dealer has opted for composition under sub-section (2) of section 42.

(j) purchases made on or after the 20th June 2006 of mandap, tarpaulin, pandal, shamiana, decoration of such mandap, pandal or shamiana, and furniture, fixtures, lights and light fittings, floor coverings, utensils and other articles ordinarily used along with a mandap, pandal or shamiana if the purchasing dealer has opted for composition of tax under sub-section (4) of section 42.

(k) purchases made on or after 1st April 2005 by a hotelier, which are treated by him as capital assets and which do not pertain to the supply by way of or as part of service or in any other manner whatsoever of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is made or given for cash, deferred payment or other valuable consideration.

(l) purchases of office equipment, furniture, fixture and electrical installation by a claimant dealer during the period commencing from the 1st April 2005 and ending on the 7th September 2006 if such goods purchased are treated by the claimant dealer as capital assets and the claimant dealer is not engaged in the business of transferring the right to use the said goods (whether or not for a specified period) for any purpose.