Me thinks its important to give a factual opinion instead of passing a judgement as to whether this is right or wrong.
If they are not accepting the equipment back, you obviously cannot keep trying to persuade them to take it back till the end of the world. Do the proper paperwork, write them a registered letter, tell them you tried to send it but were told these reasons and the company refused to take it back. Tell them how to contact you and preserve all acknowledgements, letter copies and registered letter receipts and you'd be just fine.
As for whether it is right or wrong - make your own judgement.

From India, Delhi
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