What is the correct way to handle exceptions in a REST API that produces an Excel or PDF file as response?

How do we handle exceptions or errors in a REST API which produces a file for download? I have an API written using Jersey which produces an Excel file, and it has the appropriate annotation as:

@Produces("application/vnd.ms-excel")

When everything works as expected, I am building a response with the file, and with status as Status.OK.

However, what is the correct way to build a response when an exception occurs? What should be the response header, and would the @Produces annotation cause a problem(as it mentions an Excel file, but the error response would most likely be JSON)?

Code snippet for reference:

@GET
@Path("{report}")
@Produces("application/vnd.ms-excel")
public Response generateReport(@PathParam("report") String reportName /* other query params */) {
    boolean isValid = false;
    File file = null;
    try {
        /*
         Logic to generate the excel file and return info about the generated report
        */
         /* Includes code that throws IllegalArgumentException */


    } catch(IllegalArgumentException e) {
        isValid = false;
        status = Status.BAD_REQUEST;
    } catch(Exception e) {//Quick and dirty testing for the API
        isValid = false;
        status = Status.BAD_REQUEST;
    }


    ResponseBuilder response = null;

    if(isValid) {
        response = Response.ok((Object) file);  
        response.header("Content-Disposition","attachment; filename=\"test.xlsx\"");  
    } else {
        response = Response.status(status);  
        // is this enough, or do we add info in the header here as well?
    }
    return response.build();  
}