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it's usually on the outside so that the hinged barrel won't be in the way, and interrupt the lid/door to close flush. also if you install it inside, the lid/box sides will be in the way of the opening.
Thanks all. It's being used on a medicine cabinet and perfectly flush door/case is not that critical. I have to install magnetic catches and handle so there will be a gap on the side opposite the hinge. I mounted on the faces since it helped cover some poor grain and a mistake (no!!...not a mistake!!!) I made.