In EpiServer 7 CMS, I have added categories in "Edit Categories" section
Still I do not get those categories in code from CategoryList( EpiServer.Core)
Do i need to do anything else here to make it work?
As far as I know there shouldn't be any special steps after you created a category to load it via API.
What do you see if you execute following command in your CMS database?
EXEC netCategoryListAll @CompactList = 0