Rev. Rul. 57-171

Section 6415(d) of the Internal Revenue Code of 1954 provides, in part, that any person making a refund of any payment on which the tax on transportation of property has been collected may repay therewith the amount of tax collected on such payment. The established tariffs of a carrier provide that when a shipper or consignee delivers or picks up freight at the carrier's dock he is given an allowance. Held , such an allowance made by a carrier to a shipper or consignee for delivery or pick-up service constitutes a refund of part of the amount paid for the through transportation movement. Accordingly, where a carrier collects the full transportation charges and the tax that attaches thereto from a shipper or consignee and subsequently makes an allowance for delivery or pick-up service, the carrier is authorized to repay the tax applicable to such allowance. However, the tax may be repaid only to the person from whom such tax was collected.