Tony,
By your shortcutting the proper procedures and not putting time back on the clock, your observer was totally correct to ask you the question about the untimed down. Since everyone thought you ruled that the foul and the clock occurred at the same time, an untimed down should have been expected.
This being said, I don't blame you for how you handled it. Just remember that a shortcut may sometimes not lead to the right destination at the end of the journey.
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