sparkyinak,
The particulat inspector on this job implied that it should be bonded at both places, which I believe to be a misunderstanding of the NEC.
I was thinking about bonding in the panel because he would be more likely to look there, as opposed in the transformer housing. (I know this approach may seem questionable, but I was just putting out feelers)
Yes, that is absolutely a violation of NEC (as well as safety in general), as it would provide the safety ground as an electrical return path for neutral current between the bonding points.
Roger- 250.30 only applies to seperately derived systems, like if you used a 4-pole switch to switch the neutral at a generator ATS which was bonded both at the generator and the service entry. If he bonded at both the transformer and panel but replaced the neutral wire between them with a ceramic insulator, the neutral current would simply flow between the ground points, and the problem would still exist.
Texas_Ranger - Yes, yes it is. The service neutral is bonded to ground at the transformer, at your house, and all your neighbors houses. Why this method persists to this day, I cannot fathom- the poco can do it, but it'd be a big fat violation if anyone tried to do it in a structure.