Rule 86B - Failure to pay 1% of Output Tax in Cash

 After four years, GST Department while conducting audit under section 65, is proposing to demand the 1% alongwith interest. 

What is the remedy available to taxpayer now?

If he now pays it with interest through DRC 03, where is the mechanism to reclaim the 1% ITC already used four years before.

What is the bset strategy to protect his ITC.