Interest On Excess Import IGST

Hi Expert,

We have availed excess Import IGST in FY 18-19, Same amount is reversed through DRC-03, while filing of annual return I.e. 08/01/2021. But now authority is asking to pay interest @ 18%. We are in arguments that we have ITC balance in SGST in crores. Then why we have to pay interest? But officer is denying that IGST paid through cash while importing that's why interest payment required.

Kindly suggest and provide notification or guidelines

Thanks in Advance