Registration cancellation for non compliance triggers input tax credit recovery and preserves pre cancellation tax liabilities. Cancellation may be initiated by the proper officer or the registrant for specified business changes or cessation of liability, or by the officer for non compliance, non filing, failure to commence business after voluntary registration, or when registration was obtained by fraud; the officer may set a retrospective cancellation date but must provide an opportunity to be heard. Cancellation does not affect tax or other pre cancellation liabilities, and cancelled registrants must pay an amount equivalent to input tax credit on stock and capital goods or the output tax on such goods, calculated as prescribed, with a specified adjustment for capital goods and plant and machinery.