If I get admission through ILS can I cancel the admission if I get a better college in CAP round? Will I get the fee refund?

ILS test is not framed for the admission in management programme, therefore, it is regarded as the admission in management quota so refund rules are applied as per institution norms.

Yes, you would get the fee refund but some amount would be deducted. You need to contact the college for cancellation procedure and refund amount.