Hi Shivlu,
I tested it and it's working:
CE (12.0(33)S1):
interface Loopback10
ip address 192.168.2.3 255.255.255.254
no ip directed-broadcast
!
interface Ethernet0/0
description to PE2
no ip address
no ip directed-broadcast
!
interface Ethernet0/0.10
encapsulation dot1Q 10
ip address 192.168.1.1 255.255.255.254
!
router rip
version 2
network 192.168.1.0
no auto-summary
PE:
AS1-PE2#sir rip
...
Gateway of last resort is 192.168.2.5 to network 0.0.0.0
192.168.2.0/24 is variably subnetted, 6 subnets, 3 masks
R 192.168.2.2/31 [120/1] via 192.168.1.1, 00:00:04, Ethernet1/0.10
AS1-PE2#ping 192.168.2.3
Type escape sequence to abort.
Sending 5, 100-byte ICMP Echos to 192.168.2.3, timeout is 2 seconds:
!!!!!
HTH
Thanks
Laurent.