thnax fr u r reply Mr. Andrew Welch.

Ya u r correct that xalan is 1.0. although i am setting system property to SAxon it will  poiting to
xalan. moreover jdk internally contains xalan api. i have tried all means such as directly using saxon
transformerfactoryimpl to create transformer. even though i am getting the same exception.

k anywway thnx a ton for u r prompted response.