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Hi Vikram,
The Copy_management will work. When you initially loaded the rasters into the mosaic dataset, did you use UNC paths? If not, and you copy the mosaic dataset to another server, the mosaic dataset will not be able to find the rasters.
You can repair the mosaic dataset paths using the Repair Mosaic Dataset Paths tool and specify a UNC path.
Right-click on your mosaic dataset > Modify > Repair. Can you send a screen shot of this?
What version of ArcGIS Desktop (including Service Packs) are you using?
ARcGIS 10 SP 4