Hello Vasanth,
Thanks for writing - this is an interesting topic. The problem with WebServices (WebMethods) is that they are not part of the page lifecycle and do not have access to the page control tree. I in fact believe that this is a good thing and by design - since that idea of web-services is to just request/respond to specific needs with custom logic, and not to take the burden of the whole quite complex ASP.NET infrastructure.
So I believe in your case you may need to change your code to just call an event handler / method on the page, so that the control tree will be available there and you will be able to get instnace of the grid. Calling server-side page methods from client-side javascript is also a tricky topic, but is doable. I can suggest the following article on information how it can be done:
http://www.dotnetcurry.com/ShowArticle.aspx?ID=109&AspxAutoDetectCookieSupport=1
The idea is to call a method in the same page where the grid is located and the method will be able to access the controls page Tree, including grids inside.