How to handle objectNotFoundExcetion at service layer

I have two methods at service layer in springs MVC. In one method i am throwing ObjectNotFoundExcetion with my own reason when my record not found. I am calling this method from the first method. In first method I have declared try catch for it and have further code. But once i get the ObjectNotFoundException, the whole transaction rolls back. Hence I am not able to do further processing. Why is the transaction rolling back at service layer ?

public void foo() {
   try {
       boo();
   } catch(ObjectNotFoundException e) {

   }
   // further code.
}

public void boo() throws ObjectNotFoundException 
{ 
  if () {
  } else {
      throw new ObjectNotFoundException("Record not found");
  }
}