I managed to reproduce the same issue using JBDS 8.0.0.GA. I've raised a JIRA for this
here [JBDS-3265] Unable to create bottom up web service from EJB project - JBoss Issue
Tracker (
https://issues.jboss.org/browse/JBDS-3265)
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Original post:
https://developer.jboss.org/message/912852#912852