INAD case opened does the Simple Delivery fee they paid get refunded from my balance

A buyer has opened an INAD case for a low value item. The return shipping label would cost more than they paid for the item. If I just refund without requesting a return am I responsible for refunding the money they paid to eBay for the Simple Delivery postage or is this covered by eBay and I only lose the amount they paid for the item. Never had a case opened before so just after clarification from anyone who's done ghe refund before.