Canon Jeremy Pemberton, who married Laurence Cunnington last April, had his right to officiate removed by the Acting Bishop of Southwell and Nottinghamshire Richard Inwood following his gay wedding.
The clergyman then had a job offer as a chaplain for Sherwood Forest Hospitals Trust withdrawn, which he claims was caused by the Church of England discriminating against him because of his sexual orientation.
Bishop Richard Inwood has told the tribunal same-sex marriage was against the church's beliefs.
Nottingham Employment Tribunal has now heard the final submissions from both parties.
Thomas Linden QC, representing the Church, said: "The state should not be saying to a religious organisation you can or can't choose this person as your priest.
"The tribunal should say it's clear on the evidence what the church thinks of same-sex marriage."
He argued Mr Pemberton went against the doctrine of the church when he entered his same-sex marriage in "a blaze of publicity".
Sean Jones, representing Mr Pemberton, suggested the church would not have had an issue with Mr Pemberton if he was in a civil partnership, even though he claimed they were nearly the same.
He said: "They are saying it's not the substance, it's the label. (The doctrine of marriage as one man and one woman) was not drawn up to prohibit same-sex marriage."
He added that nothing stopped clergy from entering into civil partnerships, and questioned why it should be different now another type of "civil union which the state calls marriage" has been introduced.
A final conclusion is not expected until next year.