In this paper, we focus on the multi-way relaying channel where K users wish to exchange information with each other within two phases. Precoding at each user and the relay is carefully constructed to ensure that the signals from the same user pair are grouped together and cross-pair interference can be cancelled. Reliable detection is challenging at the relay since the observation constellation is no longer one of the regular ones, due to the fact that a relay observation is the superposition of the messages from one of the $rac{1}{2}K(K-1)$ user pairs. When the trellis coded modulation is used at each node, a simple constellation mapping function and a reduced-states decoding scheme can be applied at the relay, which result in much lower complexity. Furthermore, a modified version of the decoding method is also developed which is called the re-encoding-avoidance scheme at the relay. Monte-Carlo simulation results are provided to demonstrate the performance of the proposed scheme.