LPG conversion kits and motor vehicle alteration rules: Supreme Court reads no import prohibition, so confiscation fails.

Imported LPG conversion kits were held not to fall within the prohibition required for confiscation under Section 111(d) of the Customs Act, 1962. The Supreme Court read Section 52 of the Motor Vehicles Act, 1988 as a regulatory provision governing alteration of motor vehicles and permitting modification of engines or other parts for use with different fuels, including LPG, subject to prescribed conditions. On that construction, the provision did not prohibit import of LPG conversion kits or the conversion of fuel systems from petrol to LPG or compressed natural gas. Confiscation under Section 111(d) was therefore not justified.

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Issues: Whether imported LPG conversion kits were liable to confiscation under Section 111(d) of the Customs Act, 1962 on the basis that their import was prohibited by Section 52 of the Motor Vehicles Act, 1988.

Analysis: Section 111(d) applies only where imported goods are brought into India contrary to a prohibition imposed by or under the Customs Act or any other law for the time being in force. Section 52 of the Motor Vehicles Act, 1988, as amended, regulates alteration of motor vehicles and permits modification of the engine or other parts for facilitating operation by different fuels, including liquid petroleum gas, subject to prescribed conditions. On that reading, the provision does not create a prohibition on importing LPG conversion kits, nor does it prohibit conversion of the fuel source from petrol to LPG or compressed natural gas.

Conclusion: The import of LPG conversion kits was not prohibited by Section 52 of the Motor Vehicles Act, 1988, and therefore confiscation under Section 111(d) of the Customs Act, 1962 was not justified.

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