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Cancel order after payment and shipping in process

I have ordered a mobile phone 5 days back, seller was supposed to ship on same day, he took 5 days just to dispatch. It was my wife's birthday and I could not wait so long so I had to buy her a new phone from market.

I want to cancel this transaction, seller however have shipped the device but I have not received it. He is saying he cannot cancel the order now.
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