I don't think that any citiation based only on 110.12 will stand up if challanged in court. It is too subjective. If the SE behind the shutter is the only thing that is causing the red tag, I think that the tag should be removed. I don't see it as a safety problem, in fact the shutter provides additional protection to the SE. Some might say that this is service conductors inside the building, but I don't think that the space between the siding and the shutter is inside the building.
Don.
