Actually in Maths Ext 1 & 2, the concept of "limits" is treated rather superficially. It is true that if x = u, the denominator would = 0, and that would imply division by 0. So it says x =/= 0. But your textbooks don't explain why this is so. The answer is, in considering the process of finding the limit as x tend to u, we do not need to consider the case of x = u. Then you may well ask: why so? Well it is simply because you do not need to consider this case in the definition of limits; you don't care about the point x=u. To understand this, you will need to delve into the actual definition of the limit. That is outside the scope of the HSC syllabus.
So, in MX1 most students will say that "the limit of (x^2 -x -6)/(x-3) as x tends to 3" = 3+2 = 5, saying you cancel the common factor (x-3) without fully understanding the process, since this require x-3 to be nonzero.