[Plugin: W3 Total Cache] Minify is breaking css and js

i am facing the same problem on both the wp versions 4.1.2 and 4.2.1. Im using auto mode for Minifying and when im enabling JS and Css minifcation my wp theme simply gets broken even it is same with the basic theme .

And the debug information is as follows,

W3 Total Cache error:It appears Minify URL rewriting is not working. Please verify that the server configuration allows .htaccess
Unfortunately minification will not function without custom rewrite rules.

.htaccess file contains rules to rewrite url https://www.domain.com/wp-content/cache/minify/000000/w3tc_rewrite_test. If handled by plugin, it returns “OK” message.
The plugin made a request to https://www.domain.com/wp-content/cache/minify/000000/w3tc_rewrite_test but received:
404 Not Found
instead of “OK” response.