Clock Status after Delay

[bfoulk]

I'm seeking your advice...

3-4-3i The clock shall start with the snap or when any free kick is touched, other than first touching by K, if the clock was stopped because:
i. The penalty for a delay of game foul is accepted.

Scenario...Clock is running when a foul is called on A for delay of game (failure to snap the ball within 25 sec.) and the penalty accepted. After administration of the penalty the clock is set to start on the snap. Coach begins yelling that penalties do not stop the clock and that it should start at the RFP following administration of the penalty. The WH explains that it is his discretion on when to start the clock after the delay based on his judgment on illegally consuming time or not. Regardless of time remaining 2 mins vs. 10 mins, based on the rule above would the WH have this discretion?