>the webservice blindly extracts the request SOAP message (enclosed within CDATA) out of <v002:request> tag and logs it in linux box
No-one should blindly extract anything from the middle of an XML message. Elements are meaningless without their namespace context, so any extraction of elements from the middle of a document must be done in a way that preserves the namespace context.
Michael Kay
http://www.saxonica.com/
Author, XSLT 2.0 and XPath 2.0 Programmer's Reference