good new and bad news.
good news is : below configuration worked and over convention: i removed the @SecureDomain in the code.
<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE jboss PUBLIC
"-//JBoss//DTD JBOSS 6.0//EN"
"http://www.jboss.org/j2ee/dtd/jboss_6_0.dtd">
<jboss>
<security-domain>java:/jaas/javaee6-app</security-domain>
</jboss>
<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE jboss PUBLIC
"-//JBoss//DTD JBOSS 6.0//EN"
<jboss>
<security-domain>java:/jaas/javaee6-app</security-domain>
</jboss>
i get the expected results when the non-business users calls the business method
org.jboss.resteasy.spi.UnhandledException: javax.ejb.EJBAccessException: Caller unauthorized
org.jboss.resteasy.core.SynchronousDispatcher.unwrapException(SynchronousDispatcher.java:329)
org.jboss.resteasy.core.SynchronousDispatcher.handleApplicationException(SynchronousDispatcher.java:305)
org.jboss.resteasy.core.SynchronousDispatcher.handleException(SynchronousDispatcher.java:198)
org.jboss.resteasy.core.SynchronousDispatcher.handleInvokerException(SynchronousDispatcher.java:174)
org.jboss.resteasy.core.SynchronousDispatcher.getResponse(SynchronousDispatcher.java:518)
org.jboss.resteasy.core.SynchronousDispatcher.invoke(SynchronousDispatcher.java:480)
org.jboss.resteasy.core.SynchronousDispatcher.invokePropagateNotFound(SynchronousDispatcher.java:139)
org.jboss.resteasy.plugins.server.servlet.ServletContainerDispatcher.service(ServletContainerDispatcher.java:211)
org.jboss.resteasy.plugins.server.servlet.FilterDispatcher.doFilter(FilterDispatcher.java:59)
org.jboss.weld.servlet.ConversationPropagationFilter.doFilter(ConversationPropagationFilter.java:67)
root cause
bad news is : stateless session bean can not have any extends : please clarify if it is a requirement that slsbs can not extend any classes please advise for any solution to make security work for slsb's that extend class/abstract class