I had a shop set up this way with around 30 drops hard wired into a j-box and had it rejected also.
Inspector sited 2002 NEC 400.8 (1) "Uses not permitted". " As a substitute for fixed wiring of a structure."

I ended up going with the sealtight method mentioned above. (Those threaded cord caps were not cheap!)

[This message has been edited by kentvw (edited 09-29-2004).]