What a council ! Allow off-cway parkking and paint the bays for people to use, and also put up the sings too, but completely fail to maintain the markings then use their absence to demand £160 PCN penalty. Talk about abuse of powers ! But this is typical of B & D, of course.
I would take them all the way on this. The bay markings on the carriageway can be seen, and your car is correctly positioned within them albeit a bit outside at the rear. However, the PCN is not for being parked outside the bay markings.