Everywhere the problem to this solution was mentioned as re-registering aspNet by using aspnet_regiis.exe. But this did not work for me.
Though this is a valid solution (as explained beautifully here)
but it did not work with Windows 8.
For Windows 8 you need to Windows features and enable everything under ".Net Framework 3.5" and ".Net Framework 4.5 Advanced Services".

 HTTP Error 404.3 - Not Found The page you are requesting cannot be served because of the
extension configuration. If the page is a script, add a handler. If the file should be downloaded, 
add a MIME map

 Server Error in '/MyNewService' Application.
Could not load type 'System.ServiceModel.Activation.HttpModule' from assembly 'System.ServiceModel, Version=3.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089'.