Windows 7 displays Java Update notification when the “check for automatic updates” is enabled for Java. The Java Update available notification will be displayed in Windows 7 taskbar as shown below.
Listed below are the steps to disable the check for automatic java update using Java Control Panel
From Windows 7 Start menu navigate to Control Panel -> Programs
In The Programs screen, select Java from the available list
In the Java Control Panel navigate to update tab. Un mark the check box with label as Check for Updates Automatically. And click OK button to confirm and save the changes. This would disable the display of Java Updates Available notification in Windows 7 Taskbar.