Thanks a ton for Bhaskar Karambelkar's answer which explains in detail and fixed my issue. But also I would like to re phrase the answer in three simple steps for someone who is in a hurry to fix
wsdlLocation= "http://localhost/wsdl/yourwsdlname.wsdl"
Create an xml file jax-ws-catalog.xml under META-INF as below
<catalog xmlns="urn:oasis:names:tc:entity:xmlns:xml:catalog"
prefer="system">
<system systemId="http://localhost/wsdl/yourwsdlname.wsdl" uri="wsdl/yourwsdlname.wsdl" />
</catalog>
Now package your jar. No more reference to the local directory, it's all packaged and referenced within