St payable by the landowner ?

A landowner gives his land 6000 sq.feet to a builder. Landowner and Builder agree to share the flat equally. After construction the landowner received 600 sq.feet extra. (ie 3600 sq.feet). So the Builder asks the landowner pay Rs 7.00 lakhs for the extra sq.feet.

He is charging Service Tax as follows

7,00,000 x 40% (Labour Cost) x 12.36% 

Circular no 151/2/2012 ST, dated 10-02-2012

Doubts

01. Is the ST applicable only to the extra sq.feet (600 sq.feet) of the Landowner?