return shipping query regarding itwares

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im not sure if this is the right place to post this.But here goes i bought a Seaonic S12 520w psu from itwares which was dead on arrival after i checked.I had dropped them a mail regarding this and they told to include Rs200 inside the package for return shipping which i did (im kind of new to this stuff).Then i got info from a friend that i need not pay return shipping for doa products.So I asked for a refund for the money i sent and got a response saying the customer must bear the return shipping expense and was given an example stating 'if i had bought the product locally i would have to bear the expenses to go to and fro from my local dealer and they have to do the same hence the amount'.It feels unfair that i have to spent Rs.200 extra and not to mention courier charges just to get a working product again.Could anyone help me get some clarity on this?
 
"We are providing Free Replacement only we are charging for Freight why should we pay for freight when its not our fault either". This is the reply i received.
 
If this is seller's standard T&C then you have to go by it. I don't find anything wrong with it as long as this condition has been put before the buyer beforehand. There is no right or wrong in this practice only demand-supply equation.
 
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