Octroi, after examining the history of octrois and terminal taxes, Court held that 'octrois were taxes on goods brought into the local area for consumption, use or sale', and that 'they were leviable in respect of goods put to some use or other in the area but only if they were meant for such user'. It was specifically clarified that the word 'sale' was included only in 1954 in order to bring the description of octroi in the Act in line with the Constitution, Hiralal Thakorlal Dalal (M/s.) v. Broach Municipality, AIR 1976 SC 1446 (1448): (1976) 3 SCC 398: (1976) Supp SCR 82.
It means a grant or privilege of a charter by a sovereign, Black's Law Dictionary, 7th Edn., p. 1107.