JUDGMENT : H.L. Agrawal, C.J. - A rule has been obtained by the Petitioners as to why the Municipal Council of Bhubaneswar (O.P. No. 1) shall not be restrained from realising any octroi on goods imported by the Petitioner-company to Bhubaneswar. Municipal area which are not used, sold or consumed within that area, and as to why bye-law 24(c) of the Bhubaneswar Octroi Bye-laws, 1975 shall not be quashed. 2. The facts: M/s. Ceat Tyres of India Ltd., Petitioner No. I, who have their registered office at Bombay and factory in Maharastra, have a branch office in the town of Bhubaneswar. They are engaged in manufacture of various types of automotive tyres, tubes, flaps and tread rubber and the like. The Bhubaneswar branch mostly caters to the requirements of the customers of Orissa of tyres and tubes, etc. supplied by the head office. On receipt of the goods, the branch transacts business with the registered dealers fleet owners, retreaders, commercial organisations and the Central and State Government undertakings, etc., The Petitioners' case is that they sell goods locally as well as to outside customers beyond the municipal limits in the State. The mode and manner of such transactions have been enumerated in paragraph 5 of the writ application which are quoted below: That the sale transactions carried on by the Branch fall into two categories. In regard to the local sales made within the municipal limits of Bhubaneswar when a customer whether of Bhubaneswar or of outside Bhubaneswar on payment of the price lifts goods from the godown at Bhubaneswar, a local invoice is raised wherein the delivery instructions state 'Ex-godown' and payment terms are, 'C.O.Do'. The party takes delivery of the goods only after making necessary payments. Since the sale takes place within the Bbubaneswar municipal limits, besides sales-tax and turn-over tax, one per cent octroi is also levied and the same is deposited with the Municipal authorities. A sample copy of, the invoice raised is filed herewith as Annexure-2, to the writ application. In regard to goods despatched to places outside Bhubaneswar for sale, the Branch raises an invoice on the party with delivery instructions marked 'THROUGH BANK' and payment terms are 'THROUGH BANK'. The sales-tax and turn-over tax as applicable are charged. A sample copy of, the invoice raised is filed herewith as Annexure-2, to the writ application. In regard to goods despatched to places outside Bhubaneswar for sale, the Branch raises an invoice on the party with delivery instructions marked 'THROUGH BANK' and payment terms are 'THROUGH BANK'. The sales-tax and turn-over tax as applicable are charged. The materials are then despatched through any of the approved road carriers or rail and the goods consignment note covering the consignment is marked 'SELF' and the freight charges thereon are borne by the Company. The relevant documents comprising the invoice in original and its copy for the bank together with the consignment note in original are forwarded to the respective Banks.... 3. The Notified Area Council, Bhubaneswar, predecessor of opposite party No. 1, had issued a notification u/s 388(3) of the Orissa Municipal Act, 1950 on 3-9-1976 making the Octroi Bye-laws for the regulation of the time and mode of Collection of the octroi duty levied by the Council with the sanction of the State. Government and one of the relevant provisions which is the sheet-anchor of the present writ application is bye-law No. 24 which is quoted hereunder: 24 (A) Goods intended for immediate transport and in transit through the limits shall not be' subject to the octroi. On the arrival of such goods at the check-post, and after the declaration under bye-law 11 has been made, the Octroi Moharrir shall grant a' pass free of charge in Form 'C' called the 'Transit Pass', The goods - will then proceed under the escort of a Peon to the check-post through which they are to go out. As soon as the goods or articles pass out of the limits, the pass will be surrendered to the Moharrir in charge of the exist post. After verifying the entries in the pass, he shall certify that the goods or articles have been passed out of the limits and send the pass to the Octroi superintendent. Provided that.... (b)... (c) For goods intended for temporary retention within the. limits and eventual transportation, a time limit of 15 days from the date of arrival within the limits for transit will be allowed in case of goods transported by road. (d) If the transit pass is not surrendered during the aforesaid time tbe goods shall be treated to be liable to pay octroi. 4. Mr. limits and eventual transportation, a time limit of 15 days from the date of arrival within the limits for transit will be allowed in case of goods transported by road. (d) If the transit pass is not surrendered during the aforesaid time tbe goods shall be treated to be liable to pay octroi. 4. Mr. G. Rath, learned Counsel appearing for the Petitioners, vehemently submitted that the nature of the goods which the Petitioner-company deals in is such that unlike perishable goods, they cannot be disposed of within a short time of 15 days from the date of their arrival within the municipal area, and in the result, the consequential liability to pay octroi as contemplated under by-law 24(d) was arbitrary and amounted to putting an unreasonable restriction on the freedom of trade of the Petitioner. He submitted that in India no other Municipal Authority has put such a rigorous restriction, and in support of the contention, he referred to Khadelwal Traders Vs. The Akola Municipal Council, to show that there 6 months time was fixed by the Municipal Council of Akola for such, purposes. 5. In the counter affidavit filed by O.P. No. 1, in the 9th paragraph it has been asserted that since the Petitioner-company has no branch office or sub-office or godown at any other place, except at Bhubaneswar, the incidence of sale of rubber goods must be deemed to have taken place in Bbubaneswar, although the purchase may be from different places and the transfer of document by the Company at different places was wholly irrelevant. 6. At the time of issuing notice this Court passed the following order on 21-4-1981: ... The collection of octroi from the Petitioner should be confined to the actual sales effected within the municipal limits of Bhubaneswar, and that would be possible on the basis of the sales returns submitted every month. Collection of octroi at the check gate on the basis of the goods brought into the Municipal limits, unless they are found to be actually consumed either by sale or being otherwise utilised exception being taken out for business purposes, would not be permitted. We would accordingly direct the Petitioner to maintain accounts of the total stock brought into the municipal limits of Bhubaneswar and the sales effected out of it within the said Municipal limits separately. Mr. We would accordingly direct the Petitioner to maintain accounts of the total stock brought into the municipal limits of Bhubaneswar and the sales effected out of it within the said Municipal limits separately. Mr. Rath for the Petitioner agrees that the Petitioner would go on paying the appropriate octroi on the sales effected within the municipal limits of Bhubaneswar. So far as the other portion is concerned, the Municipal Council is restrained from making any collection until further orders. xxx xxx xxx 7. The main argument advanced by Mr. Rath was that the time limit of 15 days for surrendering the 'Transit Pass' was unreasonable and created a serious impediment in the way of the Petitioner in the very nature of things as the commodities dealt in by the Petitioner could not be transported outside the limits of the municipal council within such a short time and therefore, instead of 15 days, a longer time limit,. of six months, should be fixed for removal of the goods beyond. the limits of the council. Under the provisions or Section 131(kk) of the Act, octroi duty is chargeable on goods brought within the limits of a municipality for consumption, use or sale therein. 8. The sheet-anchor of the submission of Mr. Rath, therefore, is that all the goods which are received by the Petitioner from its principal are not sold within the limits of the council as a large quantity of that is transported outside its limits and that, the incidence of 'sale' also does not took place within its jurisdiction as that would take place at the places where the documents of title which are sent in favour of 'self' through banks are endorsed and transferred in favour of the purchaser. Therefore, none of the three alternatives mentioned in Clause (kk) was satisfied inasmuch as the relevant ingredient of 'sale' under which the Petitioner's liability is sought to be fixed was not attracted. 9. It cannot be disputed that no octroi duty can be levied on an article which, after being brought within the limits of the municipal council, is re-exported outside its limits. This is a proposition which needs no more discussion and was also laid down by my learned brother Patnaik, J. in the case of the Municipal Council, Jeypore Municipality Vs. Ghansyam Das Tirth Das. This is a proposition which needs no more discussion and was also laid down by my learned brother Patnaik, J. in the case of the Municipal Council, Jeypore Municipality Vs. Ghansyam Das Tirth Das. The Bye-laws also purport to recognise this principle and accordingly, the provision for 'Transit Pass has been made. 10. The undisputed facts which merge on the statements made in the writ application as well as in the counter affidavit are that the Bhubaneswar office of the Petitioner. caters to the needs of the dealers and customers in the whole state of Orissa. Obviousiy, therefore, the entire quantity despatched to the Petitioner by their principal is meant for consumption, use or sale not only within the limits of the Bhubaneswar Municipal Council, but outside also. 11. In the situation thus obtaining in the facts of this case the relevant question that arises for consideration is as to whether the incidence of sale to such customers, dealers, etc. taken place within the municipal limits of Bhubaneswar or outside. In order to determine the situs of sale, according to the well settled principles of law, various questions of fact have to be examined. The Petitioner is prepared to place relevant proof in support of the claim for exemption of octroi duty with respect to such sales. The interim order passed by this Court on 21-4-1981 extracted in paragraph 6 above has already taken care directing the Petitioner to maintain separate accounts of sale affected outside the municipal limits of Bhubaneswar. Continuance of the interim arrangement in future would subserve the purpose of the Petitioner and also protect the interest of the municipal council, who as already stated above will have the authority to verify and scrutinise the claim of the Petitioner for exemption from the liability of octroi duty on such transactions of sale Claimed to be taking place outside the limits of the municipal council. 12. I have noted the submission of Mr. Rath that in the nature of things, keeping the time limit fixed under the Bye-laws for removal of the goods would be unreasonable. But, on this account, on examining the scheme of the Octroi Rules, I do not feel persuaded to strike it down on the ground of arbitrariness or putting an unreasonable restriction on the freedom of trade. Rath that in the nature of things, keeping the time limit fixed under the Bye-laws for removal of the goods would be unreasonable. But, on this account, on examining the scheme of the Octroi Rules, I do not feel persuaded to strike it down on the ground of arbitrariness or putting an unreasonable restriction on the freedom of trade. The cardinal principle of interpretation being to save the law on the anvil on 'vires' as far as possible so that its purpose and intention may not be frustrated, in my considered opinion, 3 months time to the Petitioner for disposing of the goods by sale outside the municipal limits of Bhubaneswar would be sufficient. 13. I would, therefore, direct that if the Petitioner satisfies that the goods received within the municipal limits of Bhubaneswar have been sold outside its limits within, a period of 3 months from their receipt, then it would 'not be liable for payment of octroi duty and the time fixed under Clauses (c) and (d) of Bye-law No. 24 would be deemed to be excluded in the Petitioner's case. 14. The writ application is allowed in part subject to the observations and directions made above. No costs. R.C. Patnaik, J. I agree. Application allowed in part. Final Result : Allowed