Yes. That's the idea of a CR. It can be accepted, rejected, deferred, delayed, etc. In fact, a change denial before it begins the process is damaging to the overall project, though it likely happens a lot on many projects and maybe even more so in certain industries. Similarly, a change accepted before it starts the process is scope creep by definition.
It's interesting that you called this a CR *rejection/*approval process and then asked if it was appropriate for it to be rejected, which is part of the process's name. So I sense there is another, more accurate question to your concern. I am wondering if it has to do with the costs incurred during the technical feasibility analysis, i.e., if rejected so too are all costs associated with it.