Odd routing behavior - Powerconnect 6224

I have an odd situation that I cannot make heads or tails of:

 

Network is configured as such:

 

Proxy/Firewall - 192.168.3.7

PC 6224 L3 Switch - 192.168.3.10 (VLAN 3) - default gateway for the 6224 is 192.168.3.7

Test Workstation: 192.168.3.28 with a default gateway of 192.168.3.7

 

From the workstation, when I ping any external address the  first hop will always be the 6224 and not the default gateway.

Since the default gateway configured on the workstation is  on the same subnet I would expect the first hop to be the gateway not the 6224.

 

This does not make any sense at all.

 

Any feedback would be very helpful.

 

Kevin