A 31-year old Kingston man was charged with possessing ammunition while not being the holder of a firearm license and bailed to appear in the Hobart Magistrates Court next month.

His friend, a 24-year old Blackmans Bay man, was released without charge.

The men were released late Saturday night after several hours of questioning, but police are still investigating.

Both men had been holed up inside a Swift Palace property from about 7pm Friday night after nearby residents reported hearing gunshots to police.

When police arrived, the men were engaged in a street fight with two other men, before they ran inside the house and remained there until surrendering about midday on Saturday.

Police have confirmed two of the men involved in the street fight were members of the Rebels Motorcycle Club, but said the siege was not bikie related.

The siege resulted from a targeted attack, possibly a feud between two groups, but there was no hostage situation, police said.

Yesterday Detective Inspector David Plumpton said while the dispute did not directly threaten the general community, the indiscriminate use of firearms would not be tolerated.

"The likelihood of serious injury to an innocent party always exists and anyone who presumes a presence beyond the law needs immediate correction," he said.Anyone with information about firearm related activities in the Kingston area is asked to contact Tasmania Police on 131444.