Two Indian Army officers and 5 soldiers were martyred after militants in police uniform attacked an artillery unite in Nagrota on the outskirts of Jammu on Tuesday.
Indian Army's Northern Command issued a statement confirming the casualties.
"The terrorists forced their entry into the officers' mess complex by throwing grenades and firing at the sentries. In the initial counter action, one officer and three soldiers of the army were martyred," the statement said.
The terrorists entered two buildings which were occupied by the officers, families and men. This led to a hostage-like situation. The situation was very quickly contained and thereafter, in a deliberate operation, all were successfully rescued which included 12 soldiers, two women and two children. However, in this rescue attempt, one more officer and two jawans sacrificed their lives," the statement read.
The statement said that the army has recovered the bodies of three militants and operations are in progress to sanitise the area.
The defence ministry is likely to seek a formal report from the army about the assault which came just two months after the deadly Uri terror strike.
Sources said the Prime Minister was briefed in the morning and again after the operation was over.