The bulkhead can be installed either way. The most common way is for the nut to be on the dry side of the tank. It will work just the same with the nut on the wet side but it is not always the most practical installation and things growing on the threads will make it difficult to remove. The gasket must always be on the flange side of the fitting to create the seal.
geo has it right. The prefffered method is to install the nut on the outside so it is accessable but they can go either way as long as the gasket is kept on the flange side. Never use silicone or teflon as they tend to make the gasket scoot out and leak. Always install on a dry clean surface and don't over tighten.
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