Hi Erich,
I forgot to mention this to you,when debugging i observed some odd things :
The code hangs at this particular ISR.

After a little digging , found out that this was linked to the RTC settings.
So when i disabled the RTC Oscillator.So i disabled the RTC module from PE,the code moved forward,but again hit a snag.
Now its hanging at the WAIT1_WaitCycles loop
So for a temporary solution i disabled all the wait functions in processorexpert.c and moved forward.
Next ,whe i ran the debugger ,it hanged at

digging further into CDC1_App_Task(),i found that it was returning the ERR_BUSOFF (as you can see from above)
Could you shed some light on this error please?
Also i matched my crystal pins with the tower board reference circuit,but still the same result..