Banking Service - Exemption to Excluded value?

Dear Friends,

New NTF - 04/2006 - ST gives exemption as under

hereby exempts the taxable service, specified in sub-clause (zm) of clause (105) of section 65 of the Finance Act, that is to say the financial leasing services including equipment leasing and hire-purchase as defined in item (i) of sub-clause (a) of clause (12) of section 65 of the Finance Act, provided or to be provided to any person, from so much of the service tax leviable thereon under section 66 of the said Finance Act, as is equivalent to the service tax calculated on ninety per cent. of an amount, forming or representing as interest, i.e. the difference between the installment paid towards repayment of the lease amount and the principal amount contained in such installment paid.

But note that clause  (viii) of Explanation 1 to Sec - 67 specifically provides that 'interest on loan' will not form part of the value of taxable services.

Further, New Draft Rule also provides same exclusion. Then Why this NTF 4/2006, provides exemption upto 90% of interest which is already excluded from taxable value?

Regards.