Petzolo — Processing order since december 12th 2016

Address: 226016

Website: www.petzolo.com

I had made an order no. 6762 on the 12th of december 2016 from petzolo.com for cat food amounting to rs. 691.20.
Since then the order was showing processing on the website. I had written a few days back and failed to get a reply. I wrote to them again today and made a phone call thereafter.
Now the status shows as hold and i get a reply from the customer care mentioned below:

"dear sir,

We apologise for the delay in order, as we can check your order is cancelled as we don't deliver to your pin code. Due to technical problem your cancellation did not reflected, we again apologise for the delay. We have already proccessed your payment refund through our third party (Payumoney).

Thanks
Team petzolo"

Now the question is, if they didn't deliver to my address why did they charge me and keep the money for almost a month? Fraud in other words.