New Delhi, Feb. 20 -- Indian tax authorities have defended the $1.4-billion tax demand on Skoda Auto Volkswagen India Pvt. Ltd, claiming that its peers, including Volvo, Mercedes, and BMW, have also paid a 30% duty on cars brought into the country after breaking them down into individual parts.

Volvo paid Rs.2,395 crore, Mercedes Rs.2,213 crore, Maruti Suzuki Rs.11,163 crore, BMW Rs.532 crore, and Kia paid Rs.263 crore in duties on completely knocked down (CKD) imports for their manufacturing processes, additional solicitor general N. Venkatraman, representing customs authorities, said in a response in the Bombay High Court.

Skoda Auto had moved the court on 29 January after the government sought customs duty at CKD rates on items impor...