bala,
The term filesystem is used for so many things in linux and it is confusing too.
/ is a filesystem.
ext3, ext2, FAT32, ntfs is also called filesystem (type)
A formatted partition too is called a filesystem and when the partition is formatted with ext3 or ext4 and mounted to a directory, say /data, then /data is also called a filesystem.(parent directory).
I hope I have confused you more....