Including Class with .h and .cpp files

I am trying to use a class in .ino file. The code is:

.ino file

#include <LED.h>

int Pin1 = 13;
int Pin2 = 12;
int Pin3 = 11;
LED led;
void setup() {
pinMode(Pin1,OUTPUT);
pinMode(Pin2,OUTPUT);
pinMode(Pin3,OUTPUT);
digitalWrite(Pin1,LOW);
digitalWrite(Pin2,LOW);
digitalWrite(Pin3,LOW);
}

void loop() {
led.on(Pin1);
delay(2);
led.on(Pin2);
delay(2);
led.on(Pin3);
delay(2);
}

.h file

#ifndef LED_h
#define LED_h

class LED{
public:
void on(int);
void off(int);
};

#endif

.cpp file

#include <stdio.h>
#include <Arduino.h>
#include "LED.h"

void LED::on(int PIN){
digitalWrite(PIN,HIGH);
}

void LED::off(int PIN){
digitalWrite(PIN,LOW);
}

Arduino compiler picks the object declaration error:

LEDC:6: error: 'LED' does not name a type
LEDC.ino: In function 'void loop()':
LEDC:17: error: 'led' was not declared in this scope

How should I declare objects in Arduino then?

Have you read?
http://playground.arduino.cc/Code/LED

Have you installed the library?