The Jockey Club disciplinary committee considered the evidence and heard from employees of the horse's trainer, Malcolm Eckley, and Captain Tim Forster on whose gallops Out Of The Blue was schooled.
The committee ruled that the conflicting evidence relating to the horse's schooling made it acceptable for Llewellyn to decline the ride, and they upheld the appeal and quashed the fine.
Llewellyn was delighted with the decision.
"I had a fair hearing but I suppose they are always fair when you win," he said.
"I'd broken the rules as they stood, and on the day the stewards had no choice but to fine me. However, I felt once we gathered all the information and presented it they would quash the fine," Llewellyn added.
In yesterday's racecourse action, Kevin Darley ended a 20-year wait for his second success in one of the oldest races in the calendar as Lucky Archer hit the target in the Crowther Homes Carlisle Bell.
He was a 17-year-old rookie jockey - on his way to becoming champion apprentice - when he guided home Pam's Gleam, trained by his then boss Reg Hollinshead, in the 1978 running.
His second success came when Lucky Archer (17-2) showed plenty of spirit to hold off Colway Ritz by a neck in a driving finish.
The five-year-old, trained 268 miles away at Chepstow, Gwent, was completing a hat-trick despite trainer Milton Bradley's reservations over the ground.Reuse content