The 'Snatch' vehicle caught fire at Dungannon around 7am - causing traffic chaos for morning motorists.
During the incident the M1 motorway was closed both ways between junctions 14 and 15 near Stangmore.
The motorway has since reopened.
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A MoD spokesman said: "The Snatch ( a lightly armoured vehicle) had been part of a two vehicle ATO tasking for the PSNI.
"The vehicle is being recovered. No one was injured during the incident."
