Since you are either a student of law or lawyer, I would request you not to think on terms of prohibited arms, prohibited bores or non prohibited bores. You would be unnecessarily causing confusion to yourself as well as others. Legally all these are restricted arms. Instead think on lines of arms of category I(a),(b),(c),(d) of SCHEDULE - I of Arms Rules 1962. Hope you are not confusing prohibited arms with prohibited bore arms. The terms or expressions "prohibited bore" or "non prohibited bore" simply do not exist in Arms Act or its Rules. For details please refer this
http://indiansforguns.com/viewtopic.php ... 93#p173750
1. Which Section of the Arms Act or Arms rules 1962 specifies that the Arms in use by the Government or Central Agencies are prohibited arms ?
Nowhere in the Arms Act 1959 or Arms Rules 1962, it is mentioned that arms in use by government or central agencies are prohibited. Such a blanket prohibition or statement in law would be unconstitutional since arms are acknowledged as fundamental right of citizens by Article 19 and that is why there exists a corresponding fundamental duty of citizens in Article 51A(d).
The term labeled in Arms Act 1959 as "Prohibited arms" is defined in Section 2(1)(i) of Arms Act 1959. Instead of using the expression "Prohibited arms", Parliament could have used any other expression for example "Automatic firearms", it would also have served the same purpose. The term "Prohibited arms" has been used to throw most people off track from its real meaning or rather its lack of meaning. As per Section 7 of Arms Act 1959 prohibited arms or ammunition can be possessed if authorized by Central Government.
2. What are the other sources (Other than Schedule 1 of Arms Rules ) that point out if an arm or ammunition is prohibited?
No arms are "prohibited" if you have license for the same. To know what kind of arms and ammunition would fall in definition of prohibited arms or ammunition, please read Section 2(1)(i) of Arms Act 1959, SCHEDULE -I category I(a) of Arms Rules 1962 and periodic Notifications in Official Gazette by Ministry of Home Affairs, New Delhi.
3. Coming back from the 1st one - Is a .308 Win in use with any Govt/Central Agency as per your knowledge?
First please read SCHEDULE -I category I(c) of Arms Rules 1962. Then read the reply of TwoRivers here
http://indiansforguns.com/viewtopic.php ... 30#p173871 Since the rifle that can fire .308 Winchester cartridges can also fire 7.62x51 mm NATO cartridges, .308 Winchester would fall in SCHEDULE -I category I(c) of Arms Rules 1962.