Mastering the wet weather, the race was won by Italian driver Vittorio Brambilla driving a March 751.
Eight seconds further back was the Shadow DN5 of British driver Tom Pryce in the first of just two podiums in his abbreviated career.
Niki Lauda delighted his home crowd by claiming his seventh pole position of the year.
Practice was marred by a series of accidents, Brian Henton crashing his Lotus when he hit an oil patch and Wilson Fittipaldi breaking two bones in his hand.
During the warm-up on Sunday morning, Mark Donohue had a tyre failure and crashed at Vöest-Hügel, the flat-out right hander after the pits.
Vittorio Brambilla had shot through the spray to gain a third place, with Ronnie Peterson leaping from tenth to fourth.
Peterson had to pit to replace a faulty visor, whilst the Brabham drivers found they had been racing with one of their own rear tyres and one of their teammates'.
If Lauda scored any points at all at the Italian Grand Prix the Austrian driver could claim the championship.