'Disabled bay outside my house'.
You got it right first time.
This has NOTHING to do with permits. As the applicable traffic sign confirms, this is simply about a disabled bay.
Were you in contravention? yes.
Of what? Being parked in a disabled bay without displaying a ....in the prescribed manner'.
What is 'the prescribed manner'?
Manner in which a badge is to be displayed
12. For the purposes of section 21(4A) of the 1970 Act a disabled persons badge is displayed on a vehicle in the prescribed manner if
(a)the badge is exhibited on the dashboard or facia of the vehicle, or
(b)where the vehicle is not fitted with a dashboard or facia, the badge is exhibited in a conspicuous position on the vehicle,
so that the front of the badge is clearly legible from the outside of the vehicle.https://www.legislation.gov.uk/uksi/2000/682The council is on a loser.
The contravention (the nonsense about permits) did not occur; there is NO provision within the law for virtual BB.