Excise dealer cenvat

Dear Members,

Query in cenvat passon in case of dealer of exciseable goods.

Mr. A Registered dealer purchase goods from XYZ Limited manufacturer, wherein he himself is buyer and consignee is Mr. B, Credit can be pass by Mr. B

Now Mr. B sale such goods to Mr. C so as a dealer he can do so. credit can be passon.

Now my question is that Mr. C can passon credit to Mr.D????????/

Two Views of mine.

1. Mr. A is first stage dealer and Mr. B is second stage dealer so credit cant passon by Mr.C who is in third stage

2. Mr.B is first dealer as consignee is Mr.B in bill of manufacturer, then Mr. C is second stage dealer and then he can passon credit..

Pl advise...

CA Biraj Kotecha