Eliminate empty spaces where variable value is empty in the document

Using the standard (MS Word 2007 from Template) smart service, if you inject this code it'll produce a linebreak for you:

</w:t><w:br/><w:t>

thanks for your replay, i tried with this code in my expression rule and attached is the document generated it gives the "</w:t><w:br/><w:t>" in the document itself.testdoc.docx

Can you confirm which smart service node you're using to try this?  And can you post a screenshot of the configuration of the replacement value in the node?

 Thanks again for your replay, i am using MS word doc from 2007  smart services , the code which i wrote =if(and(rule!APN_isBlank(pv!x),rule!APN_isBlank(pv!y)),char(0),if(not(and(rule!APN_isBlank(pv!x,rule!APN_isBlank(pv!y))), pv!x & toHtml("</w:t><w:br/><w:t>") &pv!y& toHtml("</w:t><w:br/><w:t>"),if(rule!APN_isBlank(pv!x,upper(pv!y),upper(pv!y)))) and also attaching the screen short

Why are you wrapping the code I gave you in toHtml()?  That function is sanitizing the text prior to insertion (it replaces "<" and ">" with their HTML-safe equivalents) - and my code needs to be inserted unaltered in order to work.