The Massachusetts House has passed- by a vote of 168 to 52- legislation that would impose harsh penalties on anyone displaying the North Vietnamese or Viet Cong flags. The bill now goes to the Senate.

The measure, introduced Tuesday by Rep. William Kitterman (D-Pittsfield) for the Veterans of Foreign Wars, provides a mandatory fine of not less than $100 or a jail term of not less than one year for anyone convicted of displaying such flags.

Rep. Peter C. McCarthy (D-Peabody), a firm supporter of the bill, characterized his position yesterday as a "common man's protest to the radical elements in our society."

'To Out-Liberal'

McCarthy believes the bill's chances for passage in the Senate are fair but doubts that Gov. Sargent will sign it.

"Governor Sargent has a rather perverted view of liberalism," McCarthysaid. "He thinks to be an effective leader of the Republican party he has to out-liberal the liberal element of the Democratic party."

Constitutional Protection

Paul A. Frennd. Carl M. Loeb Professor of Law, was dubious about the bill's legality. "If the flag is used as a symbol of public opinion about the war," he said, "then in my opinion it has constitutional protection."