Central government Approval under S.297

One Pvt Ltd Co. has entered in to an agreement  with Public Ltd Co. (Mr. X is director  in both the Companies). This agreement is for car hiring. Share Capital of both the Companies are more than 1Crore. Under s.297, private company is not required to obtain an approval but public company is required to obtain Central Government. Company has not paid Service Tax for this rental charges.

Whether S.297 is applicable for Car hiring (i.e. as Servies)? Pls clarify.