Technically possible, but you end up getting surrounded and arrested either way, with a certain guilty sentence. The only real way to progress is let them take you in without causing trouble, and then defending yourself in court.
(The fight is still there as a possibility, but ,,lorewise" you'd be fighting right next to the guardhouse and palace, so you get overwhelmed by taking them all on.)
That sort of unfair battle is possible in like, two or three spots throught the game, but each time the game will basically tell you that you're more or less done for.