By Kristin Roberts

WASHINGTON, May 16 (Reuters) - The U.S. commander who led a strike against the Taliban in the Afghan town of Shindand last month acted appropriately, the military has concluded after an investigation into an incident that Afghan officials say killed dozens of civilians.

Brig. Gen. Perry Wiggins, deputy director for regional operations in the Pentagon's Joint Chiefs of Staff, on Wednesday said the probe determined the commander, who has not been identified, applied the correct level of force in response to enemy fire.

Afghan officials say more than 50 civilians were killed and hundreds made homeless in U.S.-led raids in the western town of Shindand at the end of April. But U.S. officials have said all of the more than 130 killed were Taliban insurgents.

Wiggins told a Pentagon news briefing that the commander responded to continuous enemy fire in an area of known Taliban activity.

He said the commander used all means available to protect his unit and positively identified all targets as hostile or under observation at the time of the fighting.

"The on-scene commander demonstrated sound judgment throughout the engagement," Wiggins said.

"The on-scene commander used (the) appropriate level of force to respond to the continuous enemy threat and protect his unit. The on-scene commander assessment of the enemy situation was consistent with and supported the reliable intelligence from varied sources," he told reporters at the Pentagon.

Wiggins said he did not know what the investigation concluded about civilian casualties.

The deaths coincided with reports of civilian casualties elsewhere in Afghanistan and triggered protests demanding the expulsion of U.S. troops and resignation of President Hamid Karzai.

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