Guys Thanks a ton for the replies.
The issue has been resolved!
I did the following.
(Didnt create the VG using smitty vg)
1. smitty hacmp>(System Management)CSPOC>Storage>Volume Group>Create a VG
Selected both nodes
>node1
>node2
Selected the participating disks (one on node1 and the other on node2 same PVID)
Then I filled in the info > Resource Group, VG name and thats it..
My VG was created on both the nodes!
Then I went to the same options in point 1 and this time i selected Create a File system
Created my file system on the VG..
and now it is mounted on the active node and it moves with the resource group!
Thank you all