Melbourne theatre restaurant Witches in Britches has been accused of allegedly making potentially deadly counterfeit liquor and passing it off for legitimate brands such as Jim Beam.

Police raided the restaurant at Dudley Street, West Melbourne on September 20 last year after they reportedly received a tip from concerned staff.

Witches in Britches threate restaurant in Melbourne. Credit:Pat Scala

Police found 450 litres of bootleg liquor and a room filled with empty branded bottles which were being filled with moonshine, News Corp reported.

Authorities also raided a property in Warrandyte South, where a handgun was found, and have charged a 55-year-old man linked to the restaurant.