Rev. Rul. 57-23

An individual pledged certain articles of jewelry as collateral for a bank loan. The bank acquired title to the jewelry by foreclosure and then disposed of the jewelry by private sale, by offering it to any person willing to satisfy the loan. Held , since the sale of the jewelry is solely an incident to the bank's business, the sale is not subject to the retailers excise tax imposed by section 4001 of the Internal Revenue Code of 1954. However, under the provisions of section 4002 of the Code, if the jewelry had been sold on behalf of the bank by an auctioneer or other agent in the course of his business, the sale would have been subject to the retailers excise tax, and the auctioneer or other agent would be considered the person who sells at retail.