Put a Label next to Datalist 
 
<asp:Label ID="lblMessage" runat="server" Text="No records found"></asp:Label>
 
and then in code do as following
SqlCommand _cmd = new SqlCommand("showoffer", _cn);
       _cmd.CommandType = CommandType.StoredProcedure;
       _cmd.Parameters.AddWithValue("@Model", code);
       _cn.Open();
       SqlDataReader _dr = _cmd.ExecuteReader();
       if (_dr.HasRows)
       {
           DataList1.DataSource = _dr;
           DataList1.DataBind();
 lblMessage.Visible = false;
 
       }
else
{
DataList1.Visible = false;
lblMessage.Visible = true;
}
       _cn.Close();