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Seller refusing to refund for item not as described

The item I purchased was under the "New with Tags" category and arrived with no tags.  They were also described as "Very good condition" but had a stain on the back.  The stain is actually visible when you zoom in on the photo in the listing.  So I requested a refund.  Seller has refused.  Do I pay postage to send the item back to her and hope for a refund?  I thought Ebay has a policy that I'm guaranteed a refund if an item is incorrectly represented in a listing...

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