Rev. Rul. 56-662

A transportation company purchased luggage to replace similar articles which belonged to passengers, but which had been lost or damaged in transit. None of the luggage was acquired for resale. Held, the sale of luggage to the transportation company under such circumstances is a sale at retail within the meaning of section 4031 of the Internal Revenue Code of 1954 and is, therefore, subject to the retailers excise tax imposed by that section.