I know this sound like a stupid question, but considering some of the ban appeals I've seen lately on this forum, it made me wonder.
It's a common practice on Lordaeron (and I assume that it's the same on IC too) that everyone in RHC rolls need on BH when it drops, no matter what weapons they use, with the purpose of selling it.
If you consider the rules, rolling need on BH should be allowed only for people who are planning on using the item to start the quest for getting a weapon for their MS, which rolls out everyone having a i264 weapon on their MS.
Also, while you cannot prove that someone is selling the BH he rolled need on (they can just claim it dropped for them twice), most people won't even deny they are rolling need on it for selling it.
So my question is, when there is a person in RHC that needs BH for upgrading his MS weapon, and someone else wins BH while not actually needing it for use, does that count as "ninja looting in dungs"?
It's exactly as you say, it would count as ninja looting but it's a grey area since it's a quest line as well as an item, people might need it because they want the achievement that goes with completing it, people might need it because they want gold from those quests.
I think you're better off asking that question in game via a ticket to the GMs that ban people.