page navigation

HI,
I’m using a custom homepage template but page navigation not working, the next page link always takes to the 2nd page regardless on whatever page. For example when I’m on page 10, clicking on next page takes me to page and also not showing previous page.

here is the code:

if ( get_query_var('paged') ) { $paged = get_query_var('paged'); }
elseif ( get_query_var('page') ) { $paged = get_query_var('page'); }
else { $paged = 1; }

query_posts('posts_per_page=12&paged=' . $paged); if(have_posts()) : while( have_posts() ) : the_post() ?>

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Please help!