Rev. Rul. 58-410

Occasionally, luggage carried by passengers of an airline company is damaged in transit. The airline company reimburses the passengers for the value of such articles and, from time to time, the damaged luggage is sold by the airline company. Held, such occasional sales by the airline company for the purpose of disposing of damaged luggage are not sales at retail within the meaning of section 4031 of the Internal Revenue Code of 1954 and are not subject to the retailers excise tax imposed by that section.