Please follow the below steps:
Step 1: Create new_list.phtml in frontend/your_theme/default/template/catalog/category
and paste the below code :
================code starts here================
<div class="block block-list block-categories">
<div id="block-categories" class="block-title active">
<strong><span>Categories </span></strong>
</div>
<div id="leftnav" class="block-content" style="display:block">
<?php $helper = $this->helper('catalog/category') ?>
<?php $categories = $this->getStoreCategories() ?>
<?php if (count($categories) > 0): ?>
<ul id="leftnav-tree" class="level0">
<?php foreach($categories as $category): ?>
<li class="level0<?php if ($this->isCategoryActive($category)): ?> active<?php endif; ?>">
<a href="<?php echo $helper->getCategoryUrl($category) ?>"><span><?php echo $this->escapeHtml($category->getName()) ?></span></a>
<?php //if ($this->isCategoryActive($category)): ?>
<?php $subcategories = $category->getChildren() ?>
<?php if (count($subcategories) > 0): ?>
<ul id="leftnav-tree-<?php echo $category->getId() ?>" class="level1">
<?php foreach($subcategories as $subcategory): ?>
<li class="level1<?php if ($this->isCategoryActive($subcategory)): ?> active<?php endif; ?>">
<a href="<?php echo $helper->getCategoryUrl($subcategory) ?>"><?php echo $this->escapeHtml(trim($subcategory->getName(), '- ')) ?></a>
<?php $secondLevelSubcategories = $subcategory->getChildren() ?>
<?php if (count($secondLevelSubcategories ) > 0): ?>
<ul id="leftnav-tree-<?php echo $subcategory->getId() ?>" class="level2">
<?php foreach($secondLevelSubcategories as $secondLevelSubcategory ): ?>
<li class="level2<?php if ($this->isCategoryActive($secondLevelSubcategory )): ?> active<?php endif; ?>">
<a href="<?php echo $helper->getCategoryUrl($secondLevelSubcategory ) ?>"><?php echo $this->escapeHtml(trim($secondLevelSubcategory ->getName(), '- ')) ?></a>
</li>
<?php endforeach; ?>
</ul>
<script type="text/javascript">decorateList('leftnav-tree-<?php echo $category->getId() ?>', 'recursive')</script>
<?php endif; ?>
<?php endforeach; ?>
</ul>
<script type="text/javascript">decorateList('leftnav-tree-<?php echo $category->getId() ?>', 'recursive')</script>
<?php endif; ?>
<?php //endif; ?>
</li>
<?php endforeach; ?>
</ul>
<script type="text/javascript">decorateList('leftnav-tree', 'recursive')</script>
<?php endif; ?>
</div>
</div>
===============code ends here===============
Step 2 : Call new_list.phtml in your CMS page or static block:
{{block type="catalog/navigation" name="catalog.category" template="catalog/category/new_list.phtml"}}
Hope, it will help.