Hi, and welcome to the forum.
It was not an army accepted Luger. That would have had different proofs. It may have found it's way to the Wehrmacht or an informal unit. Generally, people in a war zone are not that fussy about where they acquire their firearms...
Post some pictures and we'll have better information. You have not even mentioned who manufactured the Luger (DWM, Erfurt, Simson, Mauser?)... With the Crown/N proof, it would have initially been sold commercially.
Don't store these guns in their holsters. It can lead to finish deterioration.
We have a rather complete FAQ document that can help answer many of your questions.
Marc
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 Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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