The Department of Excise, Government of Manipur was established in the year 1948 under the Council Resolution No.23 of the then Maharaja of Manipur. Excise Department worked under the Eastern Bengal & Assam Excise Act 1910, as extended to Manipur till the present Manipur Liquor Prohibition Act came into force in 1991.Certain provisions of Eastern Bengal & Assam Excise Act, 1910 as adopted in the Manipur Liquor Prohibition Act, 1991 are still enforced. For narcotics and psychotropic substances, the Department functions under the Narcotic Drugs & Psychotropic Substances Act, 1985.

The aims and objectives of the Department is to enforce Prohibition and collect revenue in the form of compounding/fine as well as levy and collect Excise Duty as provided in the acts. The main source of revenue collection is the Excise Duty levied on the liquor procured and used by military and paramilitary forces developed in the state and the state armed forces which are exempted from prohibition.