Per K.K. Bhatia :

The appellants M/s. Nathpa Jhakri Power Corporation (NJPC) are a joint venture between the Government of India and Govt. of Himachal Pradesh, set up for the purpose of construction of a power project between the towns of Nathpa - Jhakri in Himachal Pradesh known as Nathpa Jhakri Power Corporation funded by the World Bank. The civil work relating to the project was allotted to three construction companies viz., M/s. Continental Foundation Joint Venture (CFJV), M/s. Nathpa Jhakri Joint Venture (NJJV) and M/s. Jai Prakash Hyundai Consortium, (JPHC). The agreement was entered into by M/s. NJPC and the construction companies to provide inter alia 'mix concrete' for execution of various items of work under the contract.

2. The Commissioner of Central Excise, Chandigarh issued a show cause notice dated 20.1.99 to all the above parties alleging that the construction companies employed by M/s. NJPC were manufacturing 'Ready Mix Concrete (RMC)' on which no central excise duty is being discharged. It is averred that the said RMC falls under Chapter Heading No. 3824.20 of the Schedule to the Central Excise Tariff Act and is subject to central excise duty. It is stated that