Cancellation of registration triggers hearing rights and reversal of input tax credit obligations on stock and capital goods. The proper officer may cancel registration on application or suo motu for business discontinuation, change in constitution, cessation of liability, prescribed contraventions, prolonged non-filing of returns, failure to commence after voluntary registration, or fraud, with an opportunity of being heard. Cancellation may be effective retrospectively. Cancellation does not affect pre cancellation tax liabilities. Cancellation under the Central Act is deemed cancellation here. The cancelled registrant must pay, via electronic credit or cash ledger, an amount equal to input tax credit on stock or capital goods or output tax on such goods, calculated as prescribed, with special prescribed adjustments for capital goods and plant and machinery.