Service feeds passing through distribution

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tiger4life

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Location
Alabama
Occupation
Business Manager Electrical Construction/Master Electrician
I was wondering if someone could point me in right direction on this. We have been called in to complete a job and what had been done was generator and ATS installed on this service. This is not what we are doing but wanted to check on codes pertaining to this.
The distribution panel on the right has parallel runs of 350 mcm from transformer which they diverted to new ATS through the two bottom nipples into ATS then off load side of ATS back through top nipples to refeed distribution. The ATS is Service entrance rated, so my question really is to see if the service feeds can pas through the bottom of distribution into ATS. the load and service conductors are in separate raceways. It seems correct from what I have looked up but wondering if I am missing something. By the way electrical inspector did pass it.
 

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