After having failed to properly consider your representations, the council have even less of a leg to stand on. They are just hoping you'll be scared into paying, which is at best disingenuous as there's clearly no contravention shown in the video.
You will have to risk the full sum to take this to adjudication, but I'm confident that you'll end up with nothing to pay. Check what others say first, but I think the best course of action is for you to follow the instructions on the NTO about appealing to the adjudicator and simply tell them that you 'rely on the representations perviously made to the Council and the Council's failure to properly consider them'. Choose a telephone/online/or in person hearing, not an 'on the papers' ruling.
The Council will then have to prepare an evidence pack for the adjudicators, at which point they will be forced to actually look at the video that shows no contravention. They may well fold and offer no evidence, meaning you win (and the Council has to pay an adjudication fee).