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Refused refund even after cancellation

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Hi 

Looking for advice. I recently purchased gym equipment from BearFitnessUk which turns out to be ab italian company. After purchase they informed me I would not receive delivery until August. In light of this I asked to cancel my order (within 2 weeks of original purchase) the company made this very difficult asking fit a registered letter to be sent to Italy, which I did aswell as email cancellation. 

They have now shipped the item! And have said I reject delivery they will deduct shipping costs from my refund. Is this legal? I was clearly within my rights to cancel. I have raised dispute via paypal but they have said that as the item has been shipped, unless it is lost in the post or arrives not as described my claim will not be successful. 

The company has blocked me on all social media platforms and they are also now ignoring my emails. The amount was £140 so not just a couple of quid. 

Any advice? 
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