The trouble began when locals, who launched a relay hunger strike against the setting up of the crematorium yesterday fearing environmental pollution, congregated at the spot this morning to continue their agitation.
Police said when the men in uniform tried to evacuate the protesters, they threw brickbats and assaulted a policeman.
At this, the police resorted to lathicharge. As the mob damaged a police vehicle and set another on fire, police fired two rounds in the air.
The situation was brought under control by policemen and RAF was deployed, police said.
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North Bengal Development Minister Goutam Deb alleged that a conspiracy was on to scuttle development at Ramghat.
"CPI-M, Congress, BJP are hand-in-glove to stop the work (on the electric crematorium) and are inciting the people. The government will not accept this," he said.
The crematorium is being built by Siliguri-Jalpaiguri Development Authority at an investment of Rs 5 crore. The relay hunger strike was launched by locals yesterday under the aegis of 'Nagorik Mancho'.
Later, Naxalbari Congress MLA Shankar Malakar, CPI-M leader Jibesh Sarkar and BJP leader Rathindranath Bose visited the spot.