Should I pay final fees on an item which that I had to refund the seller

[dfreeney2011]

I have just been issued an invoice with an item where I have to return the money as he said it was broken on delivery and PayPal is issuing him with a refund out of my account. I found out I'm not eligible for seller protection on PayPal so is this the same for eBay? The buyer returned it to me all smashed,not wrapped and a complete mess. If it wasn't smashed before it is now. I thought the buyer had to return it to you in fair condition but this was in a terrible state. It wasn't even sealed at all so I'm not sure if I've received all the pieces.it cost me $58 to send it to him and he only paid $38 to send it back to me. It even fell over and everything fell out in the back of the drivers van. I've documented everything with pics, of how I sent it to him, how I received it back, what it looked like before and after, and the receipts from the post office.