Burred/Rough area in axle tube

[01somta]

I was getting my rearend (ford 9") ready to be powdercoated and I noticed an area inside the axle tube that was burred. This area is very thin metal and looks impossible not to have it bent while pulling axles out over the years. It also doesn't look like a ring/rim used for sealing anything, but I thought I would ask just to make sure. It is like this on both sides. Thanks for your help.