I am getting an extra empty row between data when I am importing it from the database and formatting the report in Excel sheet.
EDIT (clarification
Every thing that Alex K states in his Dec 2 '11 answer is correct. But a few other settings may be helpful. These settings help when the text of the report stretches the detail band.
On every field in the detail band set:
positionType="Float"
stretchType="RelativeToTallestObject"
Example:
This will force the all fields to be one height. The float setting tells the field to minimize the distance between the previous and next row. The RelativeToTallestObject setting tells all fields in the band to be the same height as the tallest field. These two settings help eliminate 'empty space' which shows up as unwanted cells in Excel.