No, the deal is you give items back. You don't have a service thread with a ToS covering cancellations, therefore you're pulling the fact that he owes you the cost for cancelling out of nowhere. As you said:
When someone pay's a deposit and then cancel an order you DO NOT get deposit back, same with here now, deal was to get him 70/70/70 atk/def/str and he cancel the order himself.. so he MUST pay me that +7M or we both turn backs and walk off. Thats how it "should" be.
If you can show me where this was stated before the service and agreed to then you will receive the money.