NEW DELHI, INDIA: Microsoft India today faced a major blow as the Delhi High Court refused to provide relief to the software giant on a duty demand of Rs. 260 crore by the government for alleged violation of service tax norms.

A division bench comprising Justice A K Sirki and Justice Valmiki J Mehta dismissed a petition by Microsoft India challenging the government's demand to pay Rs. 260 crore, including service tax, penalty and interest, said a PTI report.