C182 INSTRUCTOR AND STUDENT PLT MAKING PRACTICE APCH INTO SCH FAIL TO FOLLOW CTLR'S CIRCLING INSTRUCTIONS.

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WE (MYSELF AND INST STUDENT) WERE PERFORMING A PRACTICE ILS RWY 4 APCH SCH. ALBANY APCH GAVE US OUR MISSED APCH INSTRUCTIONS (HDG 010 DEGS; 127.15) AND HANDED US OFF TO SCH TWR FOR OUR PRACTICE LOW APCH. THE STUDENT WAS FLYING AND WORKING THE RADIOS. HE RPTED 'ILS ON INBOUND' TO WHICH THE CTLR REPLIED 'RPT OM; CLRED CIRCLE TO LAND RWY 28.' MY STUDENT RPTED THE OM UPON WHICH THE CTLR RESTATED 'ROGER. CLRED CIRCLE TO LAND RWY 28.' OUR INTENTIONS BEING ONLY TO DO A LOW APCH; I STATED WE WOULD 'LIKE LOW APCH ONLY; AND PROCEED TO NYC FOR A PRACTICE GPS APCH.' THE CTLR STATED THAT THERE WERE MEN AND EQUIP ON THE RWY; AND HE COULD ISSUE EITHER A RESTRICTED APCH OR CIRCLE TO LAND. I ACKNOWLEDGED HIS XMISSION; AND WE CONTINUED ON THE APCH. AT THE CIRCLING MINIMUMS; WE TERMINATED THE APCH AND EXECUTED THE MISSED APCH INSTRUCTIONS ISSUED BY ALBANY. (010 DEG HDG AND CLB). THIS BEING A VERY HIGH WORKLOAD POINT; SUPERVISING MY STUDENT; YET ALLOWING HIM TO CTL THE ACFT; I WAITED APPROX 15 SECONDS BEFORE ANNOUNCING MISSED APCH TO THE TWR; NOTICING TFC ON DOWNWIND (R) FOR RWY 28. THE CTLR REPLIED HARSHLY; 'AND WHAT IS HE DOING THERE? I ISSUED YOU A CLRNC TO CIRCLE 3 TIMES!' I REITERATED THAT WE HAD NO INTENTIONS TO LAND AND WANTED THE LOW APCH ONLY. HE REPLIED HE DIDN'T CARE AND RESTATED THE CLRNC WAS GIVEN 3 TIMES. I SAID OUR MISSED APCH INSTRUCTIONS WERE ISSUED BY ALBANY AS 010 DEGS AND CLB. HE STATED THAT THIS IS HIS AIRSPACE; AND HIS CLRNC SUPERCEDES ALBANY'S. SILENCE. HE THEN TOLD US TO CONTACT ALBANY.