im new to subaru and want to remove the box in the blue circle and need to know what to do with the pipe in the red circle if any one can help

What you need is called a "resonator delete" for a v1/v2 phase 1 impreza .

The most common brand found is the apexi resonator delete but I used to run a unbranded one .

I've removed most of the oe pipework under the inlet manifold so the icv pipework takes a different route but you can see the "delete" in this pic.

you'd just have to connect your red circled pipe to where my blue pipe is connected on my delete

Hopefully that makes sense lol .

Yea its all clear for me so the pip that goes to it is it a breather pipe

No the pipe that goes to it is from the idle control valve , but yours runs through a metal hard pipe under the inlet .

Whereas I'm running a v3 idle control valve ( icv ) and a blue pipe over the top of the inlet

Ok thanks for that lest I know now

Whats that box do and why wud you remove it im wondering if i shud do this ...

Resonator box. Buffets the air and keeps noise lower. Get rid of it for a free flow of air and maybe some throaty roar from the induction.

Do blobeyes have them lol

Yep, in the inner wing, your air scoop feeds it and then your airbox is pushed onto it