Thanks Sanjay
We did the same settings but still the issue was the same. After going through the entire config, I found that the workflow number given in the CR type was different than that of the workflow mention in the config document.
As per std MDG ERP customer BC set, the CR type delivered -
CUSTL1 - WS54300004 - this is the workflow assigned. Changed it to WS54300003 and its working perfectly now...
Wonder why this workflow temp is assigned to the std CT type....
Kiran