NSW council refused BIC and issued order to demolish

Hi all,

Based in NSW and long story short recently council came over to inspect (likely due to neighbours complaining) about an area of my house ‘illegally’ converted to a living space. Very similar to how garage spaces have been converted to living areas with kitchen, toilet etc.

I was supplied the following order with 6 months to appeal to court:

The following Orders can be served under the Environmental Planning and
Assessment Act 1979 No 203 Division 9.3 under Part 1 Schedule 5:
• Part 1-1 Stop Use Order – To stop using premises or a building
• Part 1 – 3 Demolish Works Order – To demolish or remove a building
• Part 1 – 10 Restore Works Order – To restore premises to the condition in
which they were before unlawful building or other works occurred.

Questions:

1) If I dont take any action at all, is Council within their rights to do anything at all? I was supplied this line “It is further advised that Council may consider exercising its powers under Part 6
Division 2A of the Environmental Planning & Assessment Act 1979 in respect to the
issuing of an Order/s on the property.” but could not pinpoint this clause or what it actually means.

2) Has anyone appealed to court before and actually won? (Just keen to know whether it is even worthwhile to go down this path)

3) Any other options that anyone can recommend is appreciated.