Place of supply and type of GST payable

The servicing is done by a repair person in India for XYZ (India). If yes, then how is there a supply by XYZ to PQR? The recovery of money towards repairs if done at actuals would be a financial transaction only. 

Also, the concept of liquidated damages has been disputed in the courts, and more often that not the decision is in favour of the assessee and service tax/GST is not applicable on compensatory value. 

If value is high suggest you to take a written expert opinion. In my view no tax payable, even if paid can be reversed in next month return/refund can be applied for.