@iamganesh – it sounds like you may have the plugin set to authorize transactions only.
This is a setting under WooCommerce > Settings > Payment > Stripe > Capture. If that option is not checked, then transactions will only be authorized.
Authorizations are different than capturing a charge and if you cancel an order the authorization is canceled. You would need to have the plugin set to Capture instead. In that case when you cancel the order in WooCommerce, the payment will not be refunded.
Otherwise you must either be using a Stripe plugin from another developer, or some third-party code/plugin that is impacting this – as our plugin will not do what you described by default for a captured payment.
If your plugin was already set to capture, please share a copy of your System Status Report here. You can find that by going to WooCommerce > Status.