Stephen George Button, 54, fronted the ACT Magistrates Court on Wednesday after pleading not guilty to animal cruelty.

During the contested hearing, prosecutor Marcus Dyason said the case against the defendant was that in early 2020, the complainant was woken up by what sounded like a dog screaming.

She went downstairs and screamed when she saw Button at the back door allegedly holding a knife down the throat of the puppy, named Max.

Button allegedly said words to the effect of "he is a nuisance of a dog and this is a lesson".

"This is the way we used to kill dogs in the bush," he allegedly said.

The complainant gave evidence via audio-visual link from a remote witness room, saying she woke up because "it sounded like an animal screeching".

"There was blood basically pouring out of it. The dog was basically drowning," she alleged.

"It was gurgling ... its eyes just went dead, basically."

The complainant said it was "just dreadful" and that there was "blood everywhere all over".

"I was extremely upset. I was shocked, I couldn't say anything," she said.

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During cross examination, defence lawyer Sam McLaughlin suggested that the dog escaped the premises because of the poor fencing and was hit by a car.

Mr McLaughlin questioned the complainant about the timing of the microchip and said she did not register Max at the time of the alleged offending.

He said she was concerned about the number of pets she had and her obligations as a responsible pet owner.

The complainant disputed the poor fencing and said the other pets came after Max was disposed of.

"Your evidence is that my client having killed Max and you being too scared to do anything about it, your response was to introduce more dogs to that household?" Mr McLaughlin said.

The court also heard from two civilian witnesses, with one saying his recollection was "a little vague".

The hearing will resume in June after another witness could not give evidence due to being diagnosed with COVID.

A police officer is also set to give evidence.

Magistrate Robert Cook also granted bail for Button after his application was unopposed by the prosecution.

Conditions include not to assault, intimidate or harass any prosecution witnesses.

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