Racing Victoria stewards ordered the withdrawal of a Peter Moody-trained galloper from a race at Moonee Valley on Saturday.
The scratching of Noela's Choice from the Friends of Epworth Handicap followed a Racing Victoria compliance and assurance team visit to Moody's Caulfield stables early on raceday.
A white residue was found around the mare's mouth.
Stewards took evidence from Moody stable employee Stephanie Little another staff member who is in charge of treatments.
Noela's Choice receives a treatment known as White-E, a paste used on horses which tie-up.
Chief steward Terry Bailey said he could not be satisfied the mare had not received the treatment on raceday and ordered her scratching less than hour before the race.
"On face value I suspect it is White-E substance, a paste that is used on horses that tie-up after work and whether that is the explanation, on face value, it may well be," Bailey said.
"But at the end of the day we couldn't be satisfied given the amount of residue on the horse's mouth that it may have inadvertently been received today."
Bailey said swab samples were taken of the residue.
The inquiry has been adjourned.