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You get this error when server did not respond your request
when the target machine is overloaded with lot of requests
or when the server takes more time to process the request like http timeouts.
These scenarios are quite frequent in webservices flow. You can either retry the request or gracely terminate.
Edited by: helloprasanna on Nov 14, 2012 2:07 PM
It looks like your already handling it right.
But if there are lot of such error messages popping up then you need to identify and fix the issue.
How to do it?
1. Do performance testing on the end service and identify the throughput of your end service.
2. Throttle your proxy services and business services to push the load below the agreed limit.