While others can discuss the safety effect of not allowing grounds to be
connected again at any location other than the service box, one other
problem is created by forming ground loops. You will find electronic
equipment does not like ground loops, which often form electrical currents
running in and around the loop which the electronic equipment will detect
and have interference in its ability to do its job. Sometimes it cause
instability, sometimes noise in a signal.

"Toller" wrote in message
...

The neutral and ground are not allowed to be connected together (with
few exceptions) other than at the service. The neutral connection to the
ground bar at the disconnect is a code violation.

I agree it is a code violation, but why?
Normally it is prevent grounds from being energized unnecessariy; when
they are connected to the neutral there is a potential to get a shock off
the ground.
But in this case the wires (or so I presume) go directly from the
disconnect to the breaker box. There is no chance for anything
unfortunate to happen; so why is it a code violation (except that it
is...)