Hi Ruthika,
The concept behind the refurbishment process is wrong.
C1, C2, C3 are not materials, they are Valuation Type. Saying C1 is new Material C2 - Refurbhished and C3 - Scrapped
Now you need to tell us, how many materials you have in each valuation type ?
Mostly, you should have stock in scrapped, then you can do refurbishment to move to C2.
Sorry if i misread your requirement. Can you please provide the steps and process, you want to capture in SAP, so as a consultant, we can think and respond with different scenarios. 
Additionally, refer below link
Processing when Refurbishing Serialized Materials - Maintenance and Service Processing - SAP Library
Regards
Terence