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1) Do I need to intall on the server where eBS is running and integrate with it. If this is not mandatory, how can I install GRC and make use of it ?
There are several GRC products (http://oracle.com/grc) Do you know which one you have to install? Is it Preventive Controls Governor (PCG)? All products are available via http://edelivery.oracle.com with a login. When you download the product, it has all the install documentation located in the docs directory to help you understand what is required and prerequisites.2) We have Windows 2003 server with out eBS also, can I make use of this for GRC setup and integrate with eBS which is running on REL 5.8 ?
Have a look at Note ID: 741001.1 - GRC Suite Certification Matrix to understand what is certified/supported.3) How to get license for GRC and what is the cost involved in it.
Have a look at http://www.oracle.com/us/corporate/contact/global-070511.html to find a contact near you to get cost and license arrangements.I hope that helps!