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I have installed new pinion flange & seal,looks like its leaking around splines around pinion nut,should i use some kind of sealant and reinstall?
 

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Yep.
 

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Definitely - if you look in the Service Manual, it tells you to pack the cavity between the end of the pinion splines and the companion flange with a non-hardening sealer (like Permatex Type A) before installing the washer and nut; if you don't, you'll get leakage through the splines.

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JohnZ
CRG
'69 Z28 Fathom Green
 
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