Hi @rahuledavalath ,
Generally, having internet access on the nodes where you are installing CDP Private Cloud simply saves you a few manual steps. However, it is absolutely acceptable to have nodes without internet and do an installation on "air-gapped" environment (e.g. see here: https://docs.cloudera.com/cdp-private-cloud-experiences/1.3.3/installation/topics/cdppvc-installatio...)
As for license activation, there is no need for internet access either. The license you get from Cloudera is a text file. As long as you upload it to Cloudera Manager in the appropriate installation step, there is no internet validation that needs to happen. Everything is self-contained on your hosts.
Hope this helps,
Alex