If you connect emitter to ground and
Collector to LED CATODE it will work better.
Perhaps you also need a resistor (10 - 100 kohms) between base and emitter
Npn is gnd to emitter to sink. To source you place positive to the collector then to your led via emitter but keep an eye on it's base voltage, I prefer pnp to source and npn to sink.
The easiest way to destroy an NPN transistor is bring the emitter more positive than
the base as you may have done. You should suspect the device is damaged.
The recap (this information is everywhere on the net):
emitter to ground.
collector to LED cathode, LED anode to resistor, resistor to +12V
base via 1k resistor to control pin or switch.
i.e. like this but with 12V supply.
If that doesn't work you've fried the device - test with a mechanical
switch not an Arduino pin at first, because if the device is fried the collector
may be shorted to the base.