Cenvat credit on material received free of cost

My company many a times as a part of sales & promotion activity, provides goods free of cost (FOC) to first stage dealer/stockist. Company pays the excise at the time of removal of goods from factory to it's depot/warehouse. Now dealers/stockist are requesting to pass on excise paid on such FOC goods. My question is 

1) Can company pass on the excise paid on such goods, considering the fact first stage dealer will not use this for any manufacturing activity? 

2) Can first stage dealer pass on this to second stage dealer/ultimate consumer?

Thanks in advance for your help.