I think it will be easier to give advice if we have a consistent account.
Bit confused with the notice of rejection that has been received. In short, the car was parked in a residents parking bay without a permit/expired permit due to forgetting to renew.
Which surely implies an intention to renew. However, 'The permit expired 8/3/24. It was not renewed because there was new off-street private parking for residents.' implies that the keeper had no such intention.
Let permit lapse because alternative off-street parking was available but parked on-street and got caught?? Perhaps car was parked by someone who wasn't in the 'know'? Contravention doesn't require a permit as such, if the bay was shared use then payment could have been made. Was it shared use at the time?