A PA44 CFI EXERCISED COMMAND AUTH WHEN HE DISREGARDED INSTRUCTIONS FROM CRG TWR TO AVOID ANOTHER ACFT.

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ATC TOLD US TO CIRCLE TO L DOWNWIND FOR RWY 23. APCH WAS SWAMPED; AND JUST BEFORE SWITCHING TO CRAIG TWR; ADVISED US OF SIMULTANEOUS APCHING TFC AT 3 O'CLOCK POS; ON THE ILS RWY 32 (WE WERE ON THE VOR RWY 32) TO CRG. TWR ADVISED US; NOT KNOWING OF THIS TFC; TO ENTER L DOWNWIND. DUE TO SCATTERED CLOUDS AT 1500 FT; I WAS RELUCTANT TO TURN R; ONTO DOWNWIND BECAUSE I LOST SIGHT OF THE TFC. INSTEAD; WE MADE A L 360 DEGS ON THE DOWNWIND TO AVOID OVERFLYING THE FIELD; WHILE I ATTEMPTED TO CALL THE TWR. THIS WAS AGONIZING; DUE TO FREQ CONGESTION! THE ILS INBOUND TFC FINALLY CONTACTED CRAIG TWR; AND TWR TOLD THEM TO ENTER L DOWNWIND FOR RWY 23. THIS INCIDENT HAPPENED DUE TO THE FOLLOWING REASONS: 1) FREQ CONGESTION RELATED TO LATE HDOFS; AND 2 IFR ACFT AUTH FOR SIMULTANEOUS INST APCHS; TO THE SAME RWY; STRAIGHT IN? CONGESTION ON TWR FREQ PREVENTED ADEQUATE COM DURING THE CONTINUING SEPARATION ISSUE. 2) TFC CONGESTION INSIDE THE FINAL APCH FIX OF OUR APCH. BEFORE APCH SWITCHED US TO CRAIG TWR; POINTING OUT CONFLICTING TFC AND THEN THAT CONFLICTING TFC NOT COMING UP ON CRAIG TWR'S FREQ FOR SOME TIME; ALSO ENHANCED THE PROB. TO AVOID THIS IN THE FUTURE; APCH SHOULD NOT AUTH SIMULTANEOUS IFR APCHS. IF THE LCL CTLR IS GOING TO REQUEST CIRCLE TO LAND; THEY SHOULD RELAY THIS INFO TO THE APCH CTLR WHO SHOULD INFORM THE CREWS SO THAT THE APCH CAN BE ADEQUATELY BRIEFED BEFORE IT IS COMMENCED.