where do we put the text files?

Correct. You may want to deploy them separately and redeploy only text files in case of changes.

Don't put them in the ear file. Put them in a separate directory; or even put them in database.

Put them in an external folder, and keep their location path in the properties file for your application.

So that when you change the files or add more files you simply need to go to that location to read those files.

Outside webapp.

One way (there are other ways) is to do the following:
Assume a virtual directory /data/ with your text files:

In the WEB-INF/web.xml:

     <servlet>
        <servlet-name>dispatcher</servlet-name>
        <servlet-class>org.springframework.web.servlet.DispatcherServlet</servlet-class>
        <load-on-startup>2</load-on-startup>
    </servlet>
   <servlet-mapping>
        <servlet-name>dispatcher</servlet-name>
        <url-pattern>/data/*</url-pattern>
        <url-pattern>*.html</url-pattern>
        <url-pattern>*.json</url-pattern>
       ...

And let the servlet stream it out:
Something like:

import org.apache.commons.fileupload.util.Streams;
import org.apache.commons.io.FileUtils;

    protected ModelAndView handleRequestInternal(
            HttpServletRequest request,
            HttpServletResponse response) throws Exception {
        String realPath = null;
        String path = request.getRequestURI();
        if (path.startsWith(fromPath)) {
            realPath = toPath + path.substring(fromPath.length());
        } else {
            Logger.getLogger(StaticContentElsewhereController.class.getName()).log(Level.SEVERE, "Unknown path: {0}", path);
            realPath = request.getPathTranslated();
        }
        for (Enumeration<String> en = request.getHeaderNames(); en.hasMoreElements(); ) {
            String name = en.nextElement();
            String value = request.getHeader(name);
            LOGGER.log(Level.INFO, "Header {0}: {1}", new Object[]{name, value});
        }
        if (realPath != null) {
            File sourceFile = new File(realPath);
            InputStream in = FileUtils.openInputStream(sourceFile);
            OutputStream out = response.getOutputStream();
            Streams.copy(in, out, false);
        }
        return null;
    }

This is too complicated.
gurvinder372, you suggested to put the path in the property file. can you please explain more. where is the property file? sorry I am very new to this. thanks,