Allow me to rephrase it :
In WSDL’s response we have a STRING defined, but this string is coming out to be a XML. And we need this XML to come as an XML in the output, but as webMethods places CDATA around this String to ensure that it is treated as a string not xml. I just wanted to confirm is there anyway I can make sure this String comes out as XML without this CDATA appended to it.
It is just a single place where I am making a call of docToXMLString, while making a call to this service I am ensuring that encoding is marked as false.
Hope this describes my issue better. 
#webMethods#webmethods-Protocol-and-Transport#Integration-Server-and-ESB