Is FROM inside of SERVICE legal?

[Holger Knublauch]

The following query is not valid (verified with Jena 2.7.3):
SELECT *
WHERE
{
   SERVICE <http://example.org:8890/sparql>
   {  SELECT *
       FROM <http://ex.com/base>
       WHERE
       {   ?s a <http://ex.com/resource/Batch> .
            ?s <http://ex.com/resource/id> ?id .
       }
   }
}

The parser complains about the FROM. Is this supposed to work, or are we 
limited to using GRAPH instead?

Thanks
Holger