Hi Nishit,
Yes, you can connect to excel from crystal reports. If you are using .xls (97-2003) work book then use below option.
--Create new connection --Expand Access/Excel(DAO) first option --Select Excel (.xls) in Database Name and select Database Type as 'Excel8'
Now click on next and will connect to your excel.
If you are using .xlsx format then you need to create a ODBC under control panel.
Try to use this ODBC while connecting to your excel from Crystal Reports.
Thanks,
Sastry