A key challenge in B2B and B2C applications involving dynamic composition of workflow activities is to ensure their reliable execution, in view of frequent failures in the internet environment where a composed service is executed. Existing approaches for transactional coordination of composite web services, consider forward and backward recovery alone, in order to maintain consistency in the case of failures. However, while achieving reliable execution, service cancellability is important due to the predominance of long running processes in business applications and frequently changing user requirements and business policies. If the execution of a long running process is not cancelled in the case of a changed requirement, the completion of the process results in wastage of resources and the outcome may no longer be useful. Hence, a transactional coordination framework named as Tx-FAITH is proposed to handle the cancellation recovery under the external interruption and cancellation of transactions. Tx-FAITH considers hierarchically composed web services whose components are recursively nested to form a composition and adapts a coordination approach based on context information. The proposed coordination and recovery approach when tested with 200 simultaneous users and with a database size of 0.35 million records, incurs only 10 seconds to process a request.