This probably due to an IE bug/peculiar behaviour. If the message body size is less than a certain amount of byte (I believe 513 bytes) IE will try to be intelligent and show its own message.
I guess trupti means the method(doService) calls inside service method, trupti override the service method right?..anyway the way you are handling the exception is OK . but if you are catch and throw the particular type of exception would be even better.
Are you really throwing an exception report to the user and not logging it?
How in the world do you expect to be able to debug your application?
It seems to me that a minimum treatment is:
1. log the stack trace
2. IF the exception shows that the app is now unusable, throw an UnavailableException so the container wont try another request
ELSE create and throw a ServletException with the message that will be some use to the client - such as try again later.