I was working in the US on a H1B visa. I left the US permanently in 2004 and returned to my home country. There was a error in my 2004 tax filing and I had underpaid by 200$. Am I responsible for paying interest on the amount from 2004 to 2011 even though no tax bill was sent to me by the tax department until now ?

Yes... unfortunately that's how it works. I've been hit twice for long past returns... but luckily was able to prove everything both times and owed nothing. But had there actually been an amount owed, as you found out... you owe it and interest.