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HC ruled in favor of the petitioner, a legal practitioner, quashing the service tax demand notice for income derived from legal services. The court held that as an individual lawyer, the petitioner is exempted from service tax levy on professional income. However, the department retains the right to assess and levy service tax on income from house property, as disclosed in the petitioner's income tax returns. The writ petition was disposed of with specific directions allowing potential future taxation on non-legal income sources.