Dropping back, strayed around Irish town (5)
I believe the answer is:
ennis
'irish town' is the definition.
(town in County Clare in Ireland)
'dropping back strayed around' is the wordplay.
'dropping back' means to remove the last letter.
'strayed' becomes 'sinned' (stray can mean to commit a sin).
'around' says the letters should be written in reverse.
'sinned' with its final letter taken off is 'sinne'.
'sinne' written backwards gives 'ENNIS'.
(Other definitions for ennis that I've seen before include "County town of Co Clare, Ireland" , "our potential 1/4 Across [GOLD MEDALLIST] in 2012" , "World champ" , "Poster girl" , "Southern Irish town" .)