Well I had the ugliest partner I have ever had last night. He was a very good official though (actually the guy is a longtime friend and he is not that ugly).

GV game using 30 second shot clock. Clock is running down. A1 shoots. B1 blocks shot and A1 is unable to release the ball. An instant after I blow my whistle for a held ball the shot clock goes off. I ended up calling a shot clock violation but was wondering if I should have put 1 second back on the clock (offense had arrow)?

Why? you had a held ball.

Using NF principles, it seems like lag time doesn't apply here (you'd have to see the clock at 2, and it would have to tick down to 0 to reset the clock to 2 seconds). Even though the offense will 'get the ball' from the AP arrow, there is no time on the shot clock, hence a shot clock violation.

(Note that the arrow, however, is NOT switched.)

I would have called the play the same way (shot clock violation). To take the arrow away from the offense and give them the ball with one second left is not the right thing to do. Good call!