Tamid chapter 3 says (in my own free translation):
One could smell from Y'richo the scent of the blend of the k'tores. Rabbi Eliezer b. Diglay said, "Father's house had goats on Mt. Michvar that would sneeze from the scent of the blend of the k'tores."
 or maybe "blending"
How do we understand the statement of Rabbi Eliezer b. Diglay?
Mishnayos use exaggeration. We see that earlier in the same chapter of Tamid, where it says "they watered [the sheep for] the tamid with a golden cup", which some interpret as being an exaggeration. So perhaps the first statement about the k'tores can be understod as an exaggeration — or, indeed, perhaps it is true literally. After all, Y'richo is only some fourteen miles from Y'rushalayim: perhaps a good breeze can carry a strong smell that far. I don't know.
But the statement of Rabbi Eliezer b. Diglay is a personal anecdote about goats his own family raised. I don't see how we can understand a personal anecdote as an exaggeration. On the other hand, it seems unlikely to be true literally: Michvar, the Rishon L'tziyon says, is Ya'zer, in Gad, across the river. While Ya'zer's whereabouts are not known for certain (AFAIK), it's listed as being on the boundary of Gad, and Wikipedia, at least, claims that it's on the eastern boundary. (Any better source for that claim?) And he's not saying merely that there was some remnant of scent left there, but rather that it was strong enough to make goats sneeze.