I was just testing my brand new 12v 7A sealed lead acid battery and accidentally had the alligator clips connect while connected to the battery. After hearing a "zapping" sound and seeing what appeared to be smoking wire, I quickly disconnected the battery. I then ditched the alligator clips and connected a 12v MR11 bulb with the halogen bulb ceramic holder. The bulb worked but I'm wondering if I should keep using the battery as it has been short circuited. Please advise.

P.S. I will be using a fuse with the final product.

As long as the battery wasn't run flat (down to empty, which would be less than 10V), it should be ok. I doubt you took too much life out of it.

Good to hear. Once I get my system sorted out I'll check to see how actual battery performance compares to expected performance.