The hearing into an alleged raceday treatment by trainer Paul Beshara to Happy Trails will continue into a second day after being adjourned on Friday.

Beshara, who fronted the Racing Appeals and Disciplinary Board in Melbourne, has denied injecting Happy Trails on the day he was to race in the Dato Tan Chin Nam Stakes at Moonee Valley on September 14.

Stewards withdrew Happy Trails less than hour before the race after receiving evidence from the compliance assurance team it had detected what appeared to be a puncture wound on the horse's neck during a morning raid on the stable where the Adelaide horse was staying.

During Friday's hearing, Dion Villella, of Racing Victoria's compliance assurance team, said he inspected the horse at 9am in the presence of a stable representative and there was no abnormality.

Almost two hours later, Villella returned to the stable with fellow compliance steward Kane Ashby, some minutes after Beshara had entered the premises.

A further inspection later that morning revealed a raised area on the horse's neck and a hematoma which Villella scraped, drawing blood.

James Williams, assisting Beshara, argued Villella had scratched an old wound with his finger and had missed it in his initial inspection.

"Mr Beshara was of the opinion I scratched a scab off from a previous injection. At no stage did I feel a scab," Villella said.

Happy Trails, who won last Saturday's Group One Turnbull Stakes, had been treated in the days leading up to the race for a skin condition.

The inquiry continues on Monday.