The scorers for Kuwait SC were Rogerio Coutinho (42nd minute), Hadi Khamees (44th) and Fahad Awaad (87th).
East Bengal played with 10 men for the last 24 minutes as their stopper Arnab Mondal was shown red card for pulling a rival player by holding his jersey.
The two-time defending champions thus made it to yet another continental club championship final with an aggregate scoreline of 7-2.
Needing a minimum 2-0 win to make it to the summit clash, East Bengal players looked overawed by the occasion and also didn't have the firepower to win the match. The decision of East Bengal's Brazilian coach Marcus Falopa to play with a single striker in South Sudanese James Moga defied logic.
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Specialist striker Edeh Chidi operating from deep and in-form mideo Baljit Singh Sahni being kept on the bench for 51 minutes were some other Falopa decisions that could come under scanner.
Having put up a gutsy show for 40 minutes, East Bengal lost it in the final five minutes before the break as their back-four bungled big time conceding two goals in two minutes as the match ended as a contest at the end of first half itself.