That is the correct way. You always put a seal with the lip pointing at the lubricant you wish to control. In this case, it is the gear oil from the differential that you are trying to keep out of the bearings.
On other vehicles with a similar seal, the slot on the tang is normally filled with a little piece of cork to prevent gear oil from getting to the bearings. The tang locking washer compresses the cork between it and the seal. The carriers did not do this, but it is an option.
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