The correct way to deal with this is that you should have opened an Item not Received dispute rather than messaging the seller and requesting a cancellation.
The ebay money back guarantee allows you to open a dispute when the item is only one day past the estimated delivery date.
Sadly you refused delivery which is possibly the worst thing you could have done because in ebay's eyes that is classed as successful delivery. What does the tracking say? What you should have done is accept the parcel and return it for a refund instead. If the item is overdue you can return it using the reason: Not as described so that the seller pays for the return label.
You say the seller has received the item back? But unfortunately I doubt if ebay will agree if the tracking shows successfully delivered. I think your refund is now between you and your seller.
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