11. Exclusion or inclusion of Certain purchases for the purposes of deduction under section 7, 8 or 10. - For the purposes of deducting under section 7, 8 or 10, resales of goods purchased from a Registered dealer from the turnover of sales, the expression "goods purchased from a Registered dealer"-
(1)shall be construed so as not to include the following classes of purchases:-(a)a purchase of goods if the goods at the time of their purchase were the goods specified in Schedule I;(aa)a purchase of goods in respect of which no tax is payable under the proviso to sub-section (1) of section 4;(b)a purchase of goods from any person whose sale of such goods has been wholly exempted from payment of tax under section 49 or any notification issued thereunder;(c)a purchase of goods which is not liable to tax by virtue of the provisions of section 87, and(2)shall be construed so as to include the following classes of purchases:-(a)a purchase of goods after the appointed day from a Registered dealer, but not being purchases specified in sub-section (1);(b)a purchase of goods before the appointed day from a dealer registered under the Bombay Sales Tax Act, 1959 (Bom. LI of 1959), but not being the following classes of purchases;-(i)a purchase of any goods if the goods at the time of their purchase were the goods specified in Schedule A of the said Act;(ii)a purchase of any goods from any person whose sale of such goods had been wholly exempted from payment of tax under section 41 of the said Act;(iii)a purchase of any goods which was not liable to tax by virtue of the provisions of section 75 of the said Act;(iv)a purchase of any goods described in Part II of Schedule B, or Schedule D or Schedule E of the said Act by a dealer holding a Licence under section 23 of the said Act, on the date of such purchase.Provided that nothing in this sub-section shall be deemed to prevent the cancellation of any registration before the completion of one complete year in a case where any business in respect of which a certificate of registration has been issued under this section, has been discontinued or transferred before such completion.
