Clashes broke out between two groups following Shah's murder which one group said had been done by cow vigilantes. Police has denied the involvement of any cow vigilantes.
Informed sources said Shah died due to a gunshot injury.
Army was called out on Thursday to assist the civil administration maintain law and order in the communally sensitive town.
Authorities said following improvement in the situation Army has been withdrawn and curfew is being enforced in the town by the police and the Central Reserve Police Force.
Police has already constituted a six-member special investigation team (SIT) headed by a Superintendent of Police to investigate the murder.