The head of neo-Nazi group the National Socialist Network has faced a Melbourne court charged over an alleged armed robbery in central Victoria.

Twenty-eight-year-old Thomas Sewell was arrested by counter-terrorism police at his home in Rowville in Melbourne's east this morning.

Victoria Police said the investigation followed an alleged armed robbery in the town of Taggerty on Saturday.

Police said Mr Sewell faces charges of armed robbery, robbery, theft, criminal damage, affray with face covering, affray, assault with a weapon, violent disorder, common law assault and committing an indictable offence whilst on bail.

The Melbourne Magistrates' Court heard Mr Sewell suffered an injury to his hand during the arrest.

He did not apply for bail and was remanded to appear in court on August 2.

Police said a 22-year-old Rowville man was released pending further enquiries.