What happens here? SQL Server - XACT_ABORT ON + @@ERROR Checking . .

Question

What happens with this type of scenario?

SET XACT_ABORT ON

BEGIN TRANSACTION

    ---DO SOMETHING HERE THAT CAUSES AN ERROR

COMMIT TRANSACTION

if @@error != 0
raiserror('SP failed. Step 7.', 20, -1) with log GO

My guess is that because XACT_ABORT is ON the COMMIT TRANSACTION never happens (because the whole thing is rolled back and terminated), and neither does the last statement (checking for @@error and then calling raiseerror).