item damaged in transit

[rose72285]

I recently sold a automatic level which was working fine when I sold it.  The buyer has now requested a refund as the item doesn't work.  The buyer has sent the level back to me and yes he's correct - it doesn't work, but it now also makes a noise like something is broken internally.

The buyer is requesting a refund, but I feel that the item was packed extremely well and shouldn't have broken. 

The item sold on the 5.12.12 and he hasn't contacted me until the 17.12.12.  The packing case it comes in does look to have extra 'marks' on it that weren't on the photos of the item that I took.

Any ideas?????