You could have the axle or seal surface spray welded and reground, might not be cheap but is probably the proper way, other than just replacing the axle.

JB weld and other metal repair epoxies can be used to fill pits in a seal surface with pretty good results, but a sleeve repair would be better.

•1951 GMC 250 in the Project Journals
•1948 Chevrolet 6400 - Detroit Diesel 4-53T - Roadranger 10 speed overdrive - 4 wheel disc brakes
•1952 Chevrolet 3800 pickup
---All pictures---
"First, get a clear notion of what you desire to accomplish, and then in all probability you will succeed in doing it..." -Henry Maudslay-