Myntra.com — Refund issue-return on hold IN[protected]

We have returned the watch within a week and which is completely unused and unpacked. However, Myntra showed return on hold due to label missing. Without collecting the product how they can mention this and put on hold.
After raising the issue they have collected the product and now they stopped refund due to used product. We are totally unhappy and we are going to consumer court for this, because we haven’t opened product/used not even sticker on the product removed.