I was facing same issue on AX2012 R2 CU7. Following steps help me resolve the issue, try if this works for you:
Refreshed WCF configuration of using AX2012 Client configuration utility.
Run Command prompt as “Administrator”, change directory to path where axbuild utility is located i.e. “c:\Program Files\Microsoft Dynamics AX\60\Server\MicrosoftDynamicsAX\bin”