If eBay have notified you that they have removed the seller from their site, then you need to claim with Paypal.
Log into your Paypal account and on the left select resolve a problem. open a case for item not received, and enter that eBay have removed the item and seller from their site. Ignore instruction to go back to eBay, stick with the Paypal case.
Escalate within 20 days for your refund.
