I would use it on the outside of the seal (the part that goes into the hub), but not on the sealing race (the part that seals around the axle). It seems like it would drag or bind if used there. I usually put what the seal is holding, grease or lube oil on the sealing race just for ease of installing. Most seals come with a coat of blue paint-like coating that seals in the hub.
Jim and Darlene Wright
plus Ryder, the Ethiopian