INSTRUCTIONAL C172 IS DIRECTED TO EXECUTE MISSED APCH BY SMX AND CLBS ABOVE PUBLISHED MISSED APCH ALT.

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I WAS CONDUCTING IFR TRAINING ON AN INST XCOUNTRY FLT FROM SJC TO SMX. WE (ACFT X) WERE INBOUND ON SMX VOR RWY 12 APCH AND OPERATING IN IMC. WE HAD REQUESTED AND HAD BEEN APPROVED TO EXECUTE THE PUBLISHED MISSED APCH PROC. OUTSIDE OF NINOO INTXN (IAF) ZLA INSTRUCTED US TO CONTACT SMX ATCT AND WE COMPLIED. SMX REQUESTED WE RPT THE VOR; WE STATED WE WOULD AND WERE XING NINOO. THEY THEN REQUESTED WE CANCEL IFR. I INFORMED THEM WE WERE STILL IMC; BUT WOULD RPT THE VOR (FAF). THE TWR THEN TOLD US TO ENTER A R DOWNWIND FOR RWY 30 AND RPT CANCELING IFR. AGAIN WE INFORMED THE TWR WE WERE STILL IMC; OUTSIDE THE VOR; AND PLANNING A MISSED APCH. ON THE FREQ WE HEARD THE TWR TELL A NUMBER OF ACFT THEY WERE WAITING FOR A CESSNA (US) INBOUND ON THE VOR APCH. THEN WE WERE TOLD TO EXECUTE THE MISSED APCH AT 2 MI W OF THE ARPT; RPT CANCELING IFR AND ENTERING R DOWNWIND. AGAIN; I STATED WE WERE STILL OUTSIDE THE VOR AND IMC. AT THIS TIME WE WERE LEVEL AT 1700 FT MSL. JUST XING THE VOR; WERE TOLD TO GO MISSED AND CONTACT CTR. INSTEAD OF CONTINUING TO THE MISSED APCH POINT; MY STUDENT STARTED A L CLBING TURN AND RADIOED WE WERE CLBING TO 3000 FT. I RECHKED THE MISSED APCH ALT; DISCOVERED IT WAS 2000 FT AND STARTED A DSCNT BACK TO 2000 FT FROM 2400 FT. I HAD ALLOWED THE TWR TO DISTRACT ME FROM MY PRIMARY DUTIES OF MONITORING MY STUDENT ACTIONS. I WOULD LIKE TO REMIND ALL INSTRUCTORS TO REVIEW THE BASIC RULE -- AVIATE; NAV; COMMUNICATE.