After much headache I was able to maintain a kind of hierarchy for the taxonomy terms, of the already continuing issue here, please click the below link
I did It like this, but still needs to do more.
In second step select the parent relation and check the exclude display.
Under format option select the parent taxonomy under group 1
I am getting the parent category under tag and the child terms as list-terms. using jquery I can display it in an accordion style somehow.
Now the problem i am facing is that empty taxonomy terms with counter zero are not getting displayed, please help if anyone knows the solution.