Regarding ITC reversal

This discussion addresses a situation where excess Input Tax Credit (ITC) was mistakenly claimed and utilised. The tax department has issued a notice, and while the taxpayer has sufficient ITC to reverse the erroneous claim, officials are insisting on payment via DRC-03 (cash). The core question is whether there's a rule mandating cash payment in such scenarios or if reversing via available ITC is permissible, considering the associated interest.