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The High Court of Bombay quashed and set aside orders dated August 16, 1978 and October 25, 1978, directing the respondents to issue an Export House Certificate to the petitioners within one month. The petitioners can seek facilities under paragraph 174 of the scheme and apply for additional license within three months of receiving the certificate. The court ruled that the petitioners can import items not specifically banned under the Import Policy at the time of import, even if they are canalized items under a later policy.
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