PersistenceContext EntityManager injection NullPointerException

I have a war containing the following:

META-INF/MANIFEST.MF
WEB-INF/classes/META-INF/persistence.xml
WEB-INF/classes/com/test/service/TestServlet.class
WEB-INF/classes/com/test/service/TestEntity.class
WEB-INF/classes/jndi.properties
WEB-INF/classes/postgresql-ds.xml
WEB-INF/jboss-web.xml
WEB-INF/web.xml
index.jsp

persistence.xml:

<?xml version="1.0" encoding="UTF-8"?>
<persistence xmlns="http://java.sun.com/xml/ns/persistence" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
        xsi:schemaLocation="http://java.sun.com/xml/ns/persistence http://java.sun.com/xml/ns/persistence/persistence_1_0.xsd" version="1.0">
    <persistence-unit name="test">
        <provider>org.hibernate.ejb.HibernatePersistence</provider>
        <jta-data-source>java:/TestDS</jta-data-source>

        <properties>
            <property name="hibernate.dialect" value="org.hibernate.dialect.PostgreSQLDialect"/>
            <property name="hibernate.hbm2ddl.auto" value="update" />
            <property name="hibernate.show_sql" value="true" />
        </properties>
    </persistence-unit>
</persistence>

web.xml:

<!DOCTYPE web-app PUBLIC
 "-//Sun Microsystems, Inc.//DTD Web Application 2.3//EN"
 "http://java.sun.com/dtd/web-app_2_3.dtd" >

<web-app>
  <display-name>Test Web Application</display-name>

    <context-param>
        <param-name>resteasy.scan</param-name>
        <param-value>true</param-value>
    </context-param>
    <listener>
        <listener-class>org.jboss.resteasy.plugins.server.servlet.ResteasyBootstrap</listener-class>
    </listener>
    <servlet>
        <servlet-name>Resteasy</servlet-name>
        <servlet-class>o