Seller wanting reimbursement if lost item shows up?

I bought from a seller listed as being in Australia. I was sent the tracking (and soon realised it was in fact coming from China) but the tracking has been listed as “pending” for the last 6 weeks. The seller has agreed to refund me but has asked- in the event that it shows up- that I pay for the item or send it back. 
Does this sound scammy?

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So you are asking if the item shows up that you have been refunded for, can you keep the refund and the item, and want to know if the seller is being scammy?

 

Is that correct?