This dance is performed when Shiva/Kapaliswara comes out at Bhikshatana.
http://www.youtube.com/watch?v=IaT7hUyZVOM
Of course no video can ever do justice to what actually happens and this is a poor attempt. But still…
For further details, see –http://sriramv.com/2013/03/27/bhikshatana-procession-at-kapali-temple/