The Wangaratta Magistrates Court on Monday heard Queen of Hearts Tattoos owner Donna McMillan punched a woman as she was being forcibly removed from the Murphy Street venue.

The alleged victim, who was a former partner in the business, was allegedly hit in the face.

The incident led to a second person at the business who was removing the woman being charged, which was later dropped.

The court heard McMillan hadn't been co-operative with officers and didn't hand over security camera footage.

Magistrate Peter Dunn said people were able to take "some reasonable steps to evict somebody from your premises".

But police prosecutor Leading Senior Constable Stuart Pritchard said the incident went beyond that, and occurred while the woman was being held.

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"Ms McMillan pursues the assault on the victim and punches her in the face," he said.

The officer said she could have stayed behind the counter and left the eviction to the other person.

Police were opposed to the matter being dealt with by way of a diversion.

"It's more than just excessive, would be my interpretation," Leading Senior Constable Pritchard said.

Lawyer Steven Sartori said his client was also the licensee of the business, which includes a bar.

Mr Dunn noted the case could cause problems for the licence.

Mr Sartori also said his client had exercised her right not to disclose information.

The case will return to court on December 2 for a contest mention.

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