This may be of help:
#!/bin/bash
awk -vtag=instance -vp=0 '{
if($0~("^<"tag)){p=1;next}
if($0~("^</"tag)){p=0;printf("\n");next}
if(p==1){$1=$1;printf("%s",$0)}
}' infile
Assuming the SampleSample text in your example is a mistake and keeping it simplersimple.
The p variable decides when to print what has been accumulated in variable val. On closing tag (assumed "instance") the value is printed and val is reset to empty. A $1=$1 removes leading spaces.