OK, I get it, it is really simple what you want to do. The guys at
www.torchmate.com do something similar with their software/hardware. You could implement it in hardware with your work clamped in the rotary axis, by switching a selector switch you could switch the step pulses from the y axis to the rotary axis, or by implementing a third axis in Mach3. This will mean that your cad must take care of the post to the particular axis. You do not want to convert your code to angular, it will be the normal xy code. The Lazer manufacturers like Biostronic did the same as a pipe cutting attachment. They just transfer the one axis to a rotary axis. Now depending on how your rotary axis is configured and driven, you might have to change the steps per unit setting as Chaoticone (Is he really chaotic

) said. But if you have a closed loop system with servo's and encoders, your encoder could roll on the top of the tube. Similar to the decoiler sheetmetal cutting equipment.
Whacko