Interest and penalty on audit enquiry

we have completed GST audit for 3 year's from 2017 to 2020, in this regards we have sum ITC reversal and we have excess ITC in our electronic credit ledger, so for that officers ask us to pay interest and penalty, is it applicable even after excess ITC available in electronic credit ledger, please clarify any one

and we have declared out payables in GSTR 9, so that liability needs to be paid in cash or ITC reverse

please clarify