As I have read the whole document it is working fine but at last you mentioned that "take a look at /etc/hosts.deny"

 When I typed iptables -L I can see IP has been dropped but no entries has been found in hosts.deny file.

 Can you please do the need full for this. I need all the banned IP's should come automatically in hosts.deny file for permanantly. And I have to allow it manually. Is it possible?

 Thanks,

 Harish.T