I am using CSS3 property
box-shadow: 2px 2px 2px 2px #CCCCCC;
Its giving this wierd effect on the right hand side and the bottom.
How to make the shadow to be equal on all the sides ?

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Use
instead
See this jsFiddle
The first two numeric values specify the relative x and y offset of the shadow. Hence your shadow was displaced/offset by a vector of (2px , 2px), or 2px right, and 2px down.
The third numeric value specifies the blur, and the fourth the shadow size/spread, and the fifth the colour (in HEX)