you dont use a panel filter with an induction kit.
the panel filter goes in your standard airbox, the induction kit replaces the airbox and standard filter.
be aware tho that no matter how many cold air feeds you have, the induction kit will suck in hot air and will lose performance, you wont really notice it in the winter but wait untill summer. i loved my induction kit untill the summer when the car was juddering and dying when pulling away from junctions and traffic lights