As the continous of the the above problem we request microsoft to assist. They replied with some points.
This behavior is by design. Office applications such as Word, PowerPoint, Excel etc. cannot be automated with CreateObject (VBScript) or ActiveXObject (JScript) unless this security setting allows it. Therefore the problem is not specific to Excel or JScript. The reason that Excel object is not safe from a scripting environment is because Excel can potentially writes to the User’s local file system. For example, although Microsoft Excel is a trusted tool from a reputable source, a malicious script can use its automation model to delete files on the user's computer, install macro viruses, and worse.
To solve this problem, we recommend you choose one of the following options:
1) Add the web site to the trusted sites zone.
-OR-
2) Change the following security setting for the Intranet zone to either Prompt or Enable:
"Initialize and script ActiveX Controls Not Marked as Safe"
-OR-
3) Create your own custom ActiveX control using a language like VB6, MFC, or ATL and in this ActiveX control, write code that automates Excel. This ActiveX control will be signed with a digital certificate and will be marked safe for scripting.
The following article provides more details on this solution when automating Word from a web page:
286023 - HOWTO: Use a VB ActiveX Component For Word Automation From Internet
http://support.microsoft.com/default.aspx?scid=KB;en-us;286023
Ref
Safe Initialization and Scripting for ActiveX Controls
http://msdn.microsoft.com/workshop/components/activex/safety.asp
Now the customer is agreed with the microsoft solution :-)
Thanks a lot
Soundar