The 3rd U.S. Circuit Court of Appeals in Philadelphia in 2008 had ruled that government broadcast regulators acted arbitrarily and capriciously in issuing the fine for the half-second of nudity.
However, the U.S. Supreme Court last year directed the lower court to consider reinstating the fine, following a ruling in another case that said the Federal Communications Commission could threaten fines even for fleeting profanity.
The appeals court on Tuesday will consider whether the FCC's $550,000 fine for the broadcaster is permissible.
A piece of Jackson's costume was pulled away by Justin Timberlake, exposing her breast briefly, as they sang at the NFL championship football game six years ago. The Super Bowl is one of the most watched events each year on U.S. television.