Solved !!

I have used second select inside <span> and assigned id to it, it seems 
ajax callback was not able to replace <select> in IE.
OLD :-

<select id='maker_name' name='maker_name' >
    {{for maker in makers:}}
    <option value="{{=maker.id}}"
    {{=XML(" selected='selected'") if str(maker.id)==request.vars.
maker_name else ""}}>
    {{=maker.Name}}</option>
    {{pass}}
    </select>

NEW CODE :-
<span id='maker_name' >
<select name='maker_name' >
    {{for maker in makers:}}
    <option value="{{=maker.id}}"
    {{=XML(" selected='selected'") if str(maker.id)==request.vars.
maker_name else ""}}>
    {{=maker.Name}}</option>
    {{pass}}
    </select>
</span>

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