File to import not found or unreadable: compass/css3.

[sumanranjanpanda]

After upgrade from Rails 3.2.18 to 4.2.6, I am getting the following error.

Failure/Error: @import "compass/css3"; 
      ActionView::Template::Error:
        File to import not found or unreadable: compass/css3.

I have following gems in my Gemfile (and these are not in assets block)

gem 'sass-rails', '5.0.5'
gem 'compass-rails', '3.0.2'
gem 'compass', '1.0.3'

It was working fine before with Rails 3.2.18 and sass-rails 4.0.0. Any help will be much appreciated.

Thanks,
Suman