It is known that if you uncheck 'Check for Updates Automatically' from the Java Control Panel, it will revert back as soon as you close the window.  Basically, it is not an option because its forces you to perform automaic updates.

However, in some cases you may want to prevent this from happening.  Its possible some applications rely on a specific version of java, or the latest update breaks an application.

The solution we have found to work is by editing the Java Update in the Registry.  You can use the built in Registry editor (window key + R, type regedit.exe)

Windows XP

Key Name: EnableJavaUpdate

Type: REG_DWORD

Location: My Computer\HKEY_LOCAL_MACHINE\SOFTWARE\JavaSoft\Java Update\Policy

Enable Value: 0×0000001 (1)

Disable Value: 0×0000000 (0)

Windows 7 64-bit

Key Name: EnableJavaUpdate

Type: REG_DWORD

Location: My Computer\HKEY_LOCAL_MACHINE\SOFTWARE\WOW6432Node\JavaSoft\Java Update\Policy

Enable Value: 0×0000001 (1)

Disable Value: 0×0000000 (0)

Windows 8 64-bit

Key Name: EnableJavaUpdate

Type: REG_DWORD

Location: My Computer\HKEY_LOCAL_MACHINE\SOFTWARE\WOW6432Node\JavaSoft\Java Update\Policy

Enable Value: 0×0000001 (1)

Disable Value: 0×0000000 (0)

Disable Result

If you properly disable the automatic update you will notice that the Update Tab has now disappeared from the window.