Returning damaged item to seller....

I bought a Project Ground It which unfortunately was damaged during shipping. The seller refused refund even after sending multiple pictures of damaged item to him. Only after I initiated PayPal action did he decide to refund me. Through out this process he did not want the item back. Now he has decided he wants it back. I am willing to return it but he refuses to pay for return shipping costs. Am I correct in thinking he should pay return shipping fee? Thanks!