Hello Abhishek,
Seems like your classpath doesnt point to the current directory. There is no need to set the classpath as an environment variable, its discouraged.
To quickly check if this is the problem try the following:
prompt>
java -classpath . Test
This is the preferred method of setting the classpath. Basically, if your classpath is set for example in .bash_profile, and it doesnt include the current directory '.', then the default classpath when running the 'java' command which is the current directory, is ignored, and your Test class is therefore not found.
Check this:
http://faq.javaranch.com/view?HowToSetTheClasspath for general classpath info.
Nart