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Do you really think that it is better to use that time in reading some well written literature/articles???
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There really is no point in mugging up word lists. They don't serve any purpose at all and for CAT in particular. Shubham, you are right about using the time to read some books/articles. A good vocabulary can't be developed overnight, it is cultivated over a period of reading good books.
Read the editorial page of your newspaper everyday. Also, it helps if you read magazines dealing with current affairs. This helps two ways- improving your vocabulary and your grammer. Both are of importance not only with the point of view of CAT but also in professional line too.
You can also sign up with
www.wordsmith.org (it's free) where they email one new word a day. It's extremely informative - they mention the root of the word, usage etc. I think it is an excellent website.
Manu