Amazon won't refund or credit and threw away the item I returned! Internet

This was the second computer I purchased from Amazon after returning the first. The computers were refurbished Dell desktop computers. Just like the first I purchased, I plugged it in and heard fan and clicking noises. I unplugged immediately, boxed, and returned.

Amazon is disputing, consistently making two very different and unrealistic confusing claims:

Their response I received today from Amazon to the Department of Justice:

Amazon.com <ag-replies@amazon.com>

to me, PIU             ​Hello Chinelo,

I'm Eshwar Poulker of Amazon.com. I'm responding to Peter's subject matter complaint, and copying them for their reference.

I reviewed the complaint and understand their concern regarding Order #113-5247737-4457806.

To help them with this, I involved our internal team for investigation. Upon investigating, we found that the product returned was heavily used (Dell Optiplex 7020 Desktop Computer) inside of the correct item packaging.

The (Dell Optiplex 7020 Desktop Computer, Intel Quad-Core i5-4570-3.2GHz, 32 GB RAM, 512GB SSD HDD, DVD, USB 3.0, WiFi, HDMI, Windows 10 Pro (Renewed)) from Order ID: 113-5247737-4457806 has not been returned.

Based on above results, we won’t be able to provide a replacement/refund for this order at this time. I assure them that information is accurate and we won’t be taking further action. As outlined on our website in our Conditions of Use, noted under 'Risk of Loss' which states: "All items purchased from Amazon.com are made pursuant to a shipment contract. This means that the risk of loss and title for such items pass to customer upon our delivery to the carrier.

We advise them to contact their local authorities, if necessary, in order to pursue this matter further. We also recommend that you consider selecting a more secure shipping address, such as their workplace, in the future to avoid further problems.

Thank you for your understanding.

Eshwar
Amazon.com Customer Service

1) they never received the returned item (which I have UPS proof of delivery)

2) they did receive the item but claiming that I "heavily used" the computer. (Mind you that I simply plugged the computer in and tested for all of 10 minutes. It was in my possession for less than 48 hours)

So which is it...  

Either way, they are refusing to refund or credit my purchase. Once more, they won't show proof to support their claim that the item was "heavily used". Nor will they return the computer back to me because in previous coorespondences, they admited that they "discarded" (threw it out) the item.

So, I'm not only am I out of the money I spent to make a purchase, I have nothing in return since they threw it out. Horrible business practice.  

Now, I'm having to go through the Department of Justice to file a consumer complaint. If that doesn't work, I'll have to invest the time in small claims court. A huge waste of time because of thier bad business practice.