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Hello Vanan,
Thank you for contacting the Sophos Community!
Does the smtpd_main.log says anything?
Regards,
Hi Vanan Services,
Did you configure email protection on your firewall? If you are not using email protection on your firewall, disable the default SMTP/SMTPS rule.
If the above is not true, provide smtpd_mail.log in debugging.
SSH to the XG firewall: Sophos XG Firewall: How to SSH to the firewall using PuTTY utility
Run the following command from Advanced Shell to put the smtpd service in debug: service smtpd:debug -ds nosync
Note: Run the same command to remove smtpd service from the debugging.
Replicate the issue and collect smtpd_main.log.
Check out the following KBA for more detail on log files: Sophos XG Firewall: Where to find log files?
Thanks,