The entry of goods within the limits of a municipality for consumption, use, or sale is the taxable event for the levy of octroi. The location of the warehouses/godowns outside the municipal limits is not directly relevant. The sale of the goods within the municipal limits is not a condition precedent for the levy of octroi.

R. K. PATRA, J.

( 1 ) BY this writ petition, the petitioner seeks to challenge the validity of levy/ collection of octroi on the goods covered under the octroi payment passes dated 17-8-1992, 19-8-1992 and 20-8-1992 mentioned in Annexures 5 to 10 series.

( 2 ) FACTS may be briefly stated to get the hang of the issue involved. The petitioner was incorporated under the Indian Companies Act, 1913 as a public company limited by shares and is an existing public company within the meaning of the Companies Act, 1956. It has engaged itself in the business of mining of bauxite, aluminium, smelting and manufacture of aluminium fabrication products. It operates through different agencies and various plants situated in the States of Orissa, Bihar, West Bengal, Kerala, Karnataka and Maharashtra. It is the case of the petitioner that it has its place of business at Rudrapur P. C. Balianta, District Puri where its warehouses taken on rent from M/ s. High Way Complex are located beyond the municipal limits of Bhubaneswar and what is housed within the municipality is the General Co-ordination Manager's Office at 1295, Forest Park, Bhubaneswar. Its place of business as well as the location of the warehouses are situated outside the limits of the Bhubaneswar Municipal area. In support of this plea, the petitioner has filed the certificate of registration at Annexure-1 granted under the Orissa Sales Tax Act, 1947. It is stated that on 17-7-1992 petitioner's factory at Alupuram in the State of Kerala despatched certain consignment of goods to Rudrapur, P. O. Balianta supported by invoices and consignment notes and the municipal authorities at its octroi check gate at Khandagiri allowed the trucks to proceed to its destination after being satisfied with the transaction that they were not for consumption, use or sale within the municipal limits. However, when similar consignments from Alupuram reached at the octroi check gate at Khandagiri in the month of August, 1992, they were subjected to illegal levy of octroi. Petitioner contends that the goods covered under the impugned levy were not meant for consumption, use or sale within the limits of municipality as they were destined to reach at Rudrapur beyond the municipal limits of Bhubaneswar and the impugned collection of octroi being thus without jurisdiction the same is refundable.

( 3 ) THE Municipality has filed its counter affidavit wherein the claim of the petitioner that its place of business of situated outside the limits of municipal area has been denied. It asserts that the petitioner has only its godowns/warehouses at Rudrapur "whereas its place of actual business or sale of its goods remains at Forest Park, Bhubaneswar within the limits and jurisdiction of Bhubaneswar Municipality". Regarding the impugned levy it has been stated that the invoices have been sent in the address of the petitioner at Forest Park, Bhubaneswar for sale of the goods. The agreement at Annexure-2 entered into by the petitioner and M/s. High Way Complex has been referred to say that the petitioner's godowns at Rudrapur are only for storing its various products.

( 4 ) SHRI B. P. Das, learned counsel for the petitioner has submitted that the goods in question despatched from Alapuram were destined to Rudrapur beyond the jurisdiction of the municipal limits and they being not meant for consumption, use or sale within Bhubaneswar Municipality, collection of octroi at Khandagiri check gate was without any authority. In support of his contention, he has referred to the judgment dated 31-8-1993 of this court in M/s. Batliboi and Company Ltd. v. Cuttack Municipal Council rendered in O. J. C. No. 6892 of 1992. Counsel for the Municipality on the other hand contended that although the go-downs/ warehouses of the petitioner are located outside the municipal limits but the sale having taken place at its office located in Forest Park, Bhubaneswar, the collection of octroi cannot be questioned. He has in this connection ref