I think you nailed this one necbuff. I'm not an inspector, but it looks like he found an EMT fitting that would fit IMC, like maybe a 3"EMT connector would fit 2 1/2" IMC. He did it out of cheapness or ignorance, but it's wrong. He's looking at his cost to pull it apart & put it back together & look like a fool in the process. If he pursists, large EMT connectors sometimes are stamped with the size, which will show the error(the hub on the meter socket may be stamped with the IMC size). This could be a big leaker by capilary action.

Dave