On Ticket Create, Autoreply works fine with Web UI but not when tickets are created via Email

we are using RT 4.4.1


Condition: On Create
Action: Notify Requester and CC
Queue has CC watcher.

When using RT web UI, the requester and CC watcher are receiving email. but when the ticket is created using Email then both requester as well as CC ARE NOT receiving email.

Please advise how to solve this.