Wrong Input Claimed Reversed Through DRC03 - Goods and Services Tax - GST

Respected Sir/Madam One of my client wrongly availed input of Cess in FY 2021-22. The mistake came in to knowledge while filing Annual Return. In the business of my client Cess is not chargeable as output tax hence not utilised ever and this wrong credit availed was paid through DRC-03 after filing Annual Return. I want to know that can department demand any interest / penalty on this un-utilised input. The client is based in Delhi. Please also give case laws of Hon ble High Courts and/or Hon ble Supreme Court, if any. Regards CA Sudesh Kumar Agarwal