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Challenge to notice regarding confiscation of LPG conversion kits under Customs Act due to prohibition under Motor Vehicles Act. Analysis: The petition challenged a notice stating that the conversion of a vehicle for LPG operation is prohibited under Section 52 of the Motor Vehicles Act, 1988, making the LPG conversion kits liable for confiscation under Section 111(d) of the Customs Act, 1962. Respondent No. 2 argued that although the Motor Vehicles Act was amended to include LPG as a legal energy source, the fitment of conversion kits is subject to pending rules by the Central Government. The affidavit-in-reply highlighted that until rules are framed, the use of conversion kits for LPG in vehicles remains illegal. The authority misdirected itself by relying on Section 111(d) of the Customs Act, which requires prohibition under any law for confiscation. However, the petitioner claimed the kits could be used in gas generators and marine vehicles, not covered under the Motor Vehicles Act. The court noted that Section 111(d) of the Customs Act necessitates a specific prohibition on import under another law, not just the potential use of the imported item. The petitioner clarified that the conversion kits could be used in non-motor vehicles, which are not prohibited under the Motor Vehicles Act. The absence of a specific provision prohibiting the import of LPG conversion kits led the court to reject the department's action of not clearing the consignment. The court emphasized that good intentions alone cannot justify withholding clearance without proper legal authorization. As the petitioner failed to identify any provision prohibiting the import of such kits, the court ruled in favor of quashing the notice dated October 24, 2000. The court highlighted that since there was no dispute over duty assessment, there was no need to clear the consignment provisionally under an ITC bond. Consequently, the petition was allowed, and the notice was set aside, with no costs imposed.
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