The reformed band - made up of vocalist Ozzy Osbourne, guitarist Tomy Iommi and bass player Geezer Butler - picked up the Inspiration Award at the magazine's annual prize-giving show at The Brewery in Barbican, London.
Guitarist Slash was given the Icon Award, putting him in the company of icons including Marilyn Manson, Nine Inch Nails and Alice in Chains.
Surrey-based band You Me At Six won Best British Band for the second year running, beating Iron Maiden and Bullet For My Valentine to pick up the prize.
Other winners included Tenacious D for Service to Rock, Download Festival for Services to Metal and Enter Shikari, who were named Best Live Band.
'Justice was done'
Commenting on his award, Jack Black of Tenacious D admits he was surprised the magazine made up an award for him.
He told BANG Showbiz: "They phoned us up and said we were going to be the recipients of an award, and so I said, 'What, band of the year? 'And they said, 'No, an award called in service to Rock 'n' Roll award', and so I said, 'Cool, who's won that before?' and they said, 'No one, we just invented it so you'd come.' And I said, 'So be it, we'll be there.'"
The magazine's editor James McMahon said: "So that's another awards down, for another year, and I think, justice was done in all the categories. Rock in 2012 has more than its fair share of heroes, pioneers, legends - and I'm chuffed a large proportion got to take home an oversized metallic K! for their mantelpiece this evening."
Villain of the Year went to Boyfriend singer Justin Bieber, who beat One Direction and Simon Cowell to win the prize.
Kerrang! Awards full list of winners:
Best British Newcomer
While She Sleeps
Kerrang! Service to Rock
Tenacious D
Best Single
Black Veil Brides - Rebel Love Song
Best Album
Mastodon - The Hunter
The Devotion Award
The Blackout
Kerrang! Service to Metal
Download Festival
Best Video
Bring Me The Horizon - Alligator Blood
Best Live Band
Enter Shikari
Best International Band
My Chemical Romance
Best British Band
You Me At Six
Kerrang! Hall of Fame
Machine Head
Kerrang! Icon
Slash
Kerrang! Inspiration Award
Black Sabbath
Best International Newcomer
Falling In Reverse
Best TV Show
Game Of Thrones
Best Video Game
Skyrim
Best Film
The Hunger Games
Best Comedian
Russell Howard
Tweeter of the Year
Hayley Williams, Paramore
Hottest Female
Lzzy Hale, Halestorm
Hottest Male
Ben Bruce, Asking Alexandria
Villain of the Year
Justin Bieber
Hero of the Year
Rou Reynolds, Enter Shikari
Best Festival
Download