[PCI DSS 1.x] 1.3.8 Implement IP masquerading to prevent internal addresses from being translated and re

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[PCI-DSS] 1.3.8 Implement IP masquerading to prevent internal addresses from being translated and revealed on the Internet, using RFC 1918 address space. Use network address translation (NAT) technologies—for example, port address translation (PAT).

1.3.8 For the sample of firewall and router components, verify that NAT or other technology using RFC 1918 address space is used to restrict broadcast of IP addresses from the internal network to the Internet (IP masquerading).

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Internal space

Is it acceptable to use your own class B routable address space for in scope PCI hosts as long as you PAT their outbound traffic to the internet?
An auditor is saying that you must only use RFC 1918 addresses for in scope PCI hosts. This seems crazy.