Roslyn,
Electricmanscott posted the applicable NEC requirement. The main disconnect must be "nearest the point of entrance of the service conductors". In your mind, point to the spot where the service conductors enter the building, then point to the service disconnect. Now, if you can point to a spot along the service conductors between the first two spots, then the disconnect is not "nearest the point of entrance", because this third spot is nearer. If the AHJ were to follow the letter of the NEC on this, there would be no distance allowed between the entrance point and the disconnect. If the AHJ is making up any rules here, it is only to allow a more flexible interpretation of what "nearest the point of entrance" means. So, if you are going to insist upon the AHJ not making up rules, then you must be prepared to live with a 0 ft. allowance in such cases, because that is what the NEC litteraly says.
