Getting java.net.ConnectException: Connection timed out but able to do telnet from the same machine to server

I am getting following exception in Java code. But when I do telnet to the same server, it works. Any hint what might the issue?

Caused by: java.net.ConnectException: Connection timed out

        at org.apache.axis.AxisFault.makeFault(AxisFault.java:129)

        at org.apache.axis.transport.http.HTTPSender.invoke(HTTPSender.java:131)

        at org.apache.axis.strategies.InvocationStrategy.visit(InvocationStrategy.java:71)

        at org.apache.axis.SimpleChain.doVisiting(SimpleChain.java:150)

        at org.apache.axis.SimpleChain.invoke(SimpleChain.java:120)

        at org.apache.axis.client.AxisClient.invoke(AxisClient.java:180)

        at org.apache.axis.client.Call.invokeEngine(Call.java:2564)

        at org.apache.axis.client.Call.invoke(Call.java:2553)

        at org.apache.axis.client.Call.invoke(Call.java:2248)

        at org.apache.axis.client.Call.invoke(Call.java:2171)

        at org.apache.axis.client.Call.invoke(Call.java:1691)

        at se.telenor.cpcextraservices.org.tempuri.BasicHttpBinding_CPCWS2DefStub.getServiceIDsFromAccountID(BasicHttpBinding_CPCWS2DefStub.java:451)

        at customerentrance.model.util.CPCUtil.getServicesForAccountId(CPCUtil.java:198)

        ... 78 more

Caused by: java.net.ConnectException: Connection timed out

        at java.net.PlainSocketImpl.socketConnect(Native Method)

        at java.net.PlainSocketImpl.doConnect(PlainSocketImpl.java:305)

        at java.net.PlainSocketImpl.connectToAddress(PlainSocketImpl.java:171)

        at java.net.PlainSocketImpl.connect(PlainSocketImpl.java:158)

        at java.net.Socket.connect(Socket.java:452)

        at java.net.Socket.connect(Socket.java:402)

        at java.net.Socket.(Socket.java:309)

        at java.net.Socket.(Socket.java:124)

        at org.apache.axis.components.net.DefaultSocketFactory.create(DefaultSocketFactory.java:129)

        at org.apache.axis.transport.http.HTTPSender.getSocket(HTTPSender.java:157)

        at org.apache.axis.transport.http.HTTPSender.invoke(HTTPSender.java:114)

        ... 89 more