Ok, normally I'd agree with what jitendraag said, but... What content is this being served as an alternate to? None that I can tell. This is CLEARLY an attempt to hide content from users while serving it to the search engines. Monet, I really am sorry about what I said earlier when I edited my post. I take it back and now stand by original statement - fire them. Preferably out of an airlock, as soon as possible. I still suggest you consult with a reputable SEO consultant in order to ensure your site is truly being optimized for the search engines will still providng a quality user experience.
Thanks Dan. As I understand putting content "only" in noscript would be blackhat though if there was an alternate (same/similar) content outside noscript it would be whitehat That brings me to my second question: Would SEs give a duplicate content penalty if same paragraph is repeated within noscript tags?
You'd probably have your site flagged for a human review and summarily told to either remove it or else.