This o-ring is for the X1 2nd generation machine. They seal the top of the handle to the group head, whether you are utilizing the ground coffee handle (with integral tamper/filter) or ESE pod handle.
The o-ring seals the top of the handle to the group head, whether you are utilizing the ground coffee handle or ESE pod handle. If you are using a pod handle the o-ring fits around the top of the pod.
If you are using a ground coffee handle the o-ring presses into a groove in the lower part of the two-part tamper.
You may also need an X1 - REPLACEMENT HEAD SEAL