Sorry guys I wrote the wrong number. But it is supposed to be interrupt 0 and not 1. So I am using
IT0 = 0;
EX0 = 1;

void Interrupt (void) interrupt 0 
{ 
   EX0 = 0; 
   // Do some stuff...takes (msec) 
   while (interrupt_pin == 0); 
   delay(10000);     // glitch reject 
   // do some stuff... (takes msec) 
   EX0 = 1;    // after setting it, wdt triggers causing an int. 
   return; 
}