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>>Is it possible for the application to some how signal from the wiced_transport_data_handler_t  callback to the caller that the data can not be consumed at the moment?<<
Do you mean that the UART Driver should not assert the CTS signal for further receiving the data from Transmitter?
You can not send a signal from call back function wiced_transport_data_handler_t to the caller function of it. However, you can drive the UART lines from your application.
Or other option is to use PUART and disable interrupts there to stop receiving data.