munny query 000

Refund is

Getting back any duty/amount paid, but which is not required to be paid under the Central Excise law and getting back the duty paid on the goods exported/duty paid on the materials used in the manufacture of goods exported are refund.

If yarn is duty free, then you are eligible for refund. 

under Rule 5 of Cenvat Credit Rules,

You can claim refund of that credit as you have used that input for product which is exported..

Just make sure that

You have not claimed drawback or

rebate under rule 18 of central excise rules..

All the best

You can claim the refund on excisable inputs used in manufacture of goods which are exported out of india, even if the final product atttracts no excise duty.