diff --git a/app/controllers/projects/branches_controller.rb b/app/controllers/projects/branches_controller.rb
index dad73c37fea5d521c83ed738065c86fdda160a20..6264f10ce2d9323c48cc49ee0b711455c66ee5f7 100644
--- a/app/controllers/projects/branches_controller.rb
+++ b/app/controllers/projects/branches_controller.rb
@@ -34,11 +34,9 @@ def index
         Gitlab::GitalyClient.allow_n_plus_1_calls do
           render
         end
-      rescue Gitlab::Git::CommandError => e
-        Gitlab::ErrorTracking.track_exception(e)
-
+      rescue Gitlab::Git::CommandError
         @gitaly_unavailable = true
-        render
+        render status: :service_unavailable
       end
       format.json do
         branches = BranchesFinder.new(@repository, params).execute
diff --git a/spec/controllers/projects/branches_controller_spec.rb b/spec/controllers/projects/branches_controller_spec.rb
index ea22e6b6f1037bcb5b61d8e44ebd1c2fc83294d6..1580ad9361dee816c88ae652be28fc638f3fd67e 100644
--- a/spec/controllers/projects/branches_controller_spec.rb
+++ b/spec/controllers/projects/branches_controller_spec.rb
@@ -688,21 +688,23 @@ def destroy_all_merged
     end
 
     context 'when gitaly is not available' do
+      let(:request) { get :index, format: :html, params: { namespace_id: project.namespace, project_id: project } }
+
       before do
         allow_next_instance_of(Gitlab::GitalyClient::RefService) do |ref_service|
           allow(ref_service).to receive(:local_branches).and_raise(GRPC::DeadlineExceeded)
         end
-
-        get :index, format: :html, params: {
-           namespace_id: project.namespace, project_id: project
-        }
       end
 
-      it 'returns with a status 200' do
-        expect(response).to have_gitlab_http_status(:ok)
+      it 'returns with a status 503' do
+        request
+
+        expect(response).to have_gitlab_http_status(:service_unavailable)
       end
 
       it 'sets gitaly_unavailable variable' do
+        request
+
         expect(assigns[:gitaly_unavailable]).to be_truthy
       end
     end