Seller refusing to refund postage

My parcel was not delivered but I can track it to my town.  This is a problem with the courier I am told by the vendor.

 

Vendor is offering to cancel the sale but will only refund the cost of the article and she has already refunded this to paypal so eBay is aware I only have a partial refund.

 

I've refused the cancellation but, according to the blurb, eBay says it will be cancelled by 25th of this month any way.

 

I've opene a INR case but that disappears on the 26th - so eBay won't do anything until after the cancellation request has been actioned!

 

Now what?

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