Whether the cancellation of registration certificate is permissible

Yes. Any Registration granted under this Act may be cancelled by the Proper Officer, in circumstances mentioned in Section 29 of the CGST Act. Also, the proper officer may, either on his own motion or on an application filed by the registered taxable person or by his legal heirs, in case of death of such person, cancel the registration.

(ICAI FAQ PUBLICATIONS 06-09-2017 REGISTRATION: FAQ NO. 25)