(1) Any person aggrieved by the imposition of any penalty under section 50 may prefer an appeal--
         (a) where the penalty has been imposed by the Director-General, to the Central Government;
         (b) where the penalty has been imposed by the Chief Inspector, to the State Government,
within a period of three months from the date of communication to such person of the imposition of such penalty:
     Provided that the Central Government or the State Government, as the case may be, may, if it is satisfied that the appellant was prevented by sufficient cause from preferring an appeal within the aforesaid period of three months, allow such appeal to be preferred within a further period of three months.
     (2) The appellate authority may, after giving the appellant an opportunity of being heard, if he so desires, and after making such further inquiry, if any, as it may consider necessary, pass such order as it thinks fit confirming, modifying or reversing the order appealed against or may send back the case with such directions as it may think fit for a fresh decision.