GST refund re-application against NIL refund application with ref. to Circular No.110/29/2019 -GST

Hi All professionals,

We have applied for GST refund against NIL refund applications, with reference to Circular No. 110/29/2019 - GST. 

But issue is when we applied this, our refund application for subsequent period was already filed but refund order was not issued hence after discussing with inspector we applied and debited refund amount from DRC-03 but now Asst. Commissioner is rejecting the refund telling your refund application for subsequent period was  already filed and you are not eligible but you can get this refund in appeal.
Please let us know can we go for appeal ?
Also if he rejects the refund reversal/ re-credit of refund amount which was deducted under DRC-03 is possible ?

Thanks in advance !