No.
Cheating against cheaters

The cheated becomes the cheater ? Hmmm
Therefor it would not be human against human...it would be computer against computer, with the two button pushers becoming spectators, while the machines play against each other.
If you know that someone is cheating, just flip them the finger and move on.
Two wrongs do not make a right.

Yes. The best strategy to encourage good behaviour is tit-for-tat.
In every game you play against them, cheat if they cheated the previous game.

It alway surprises me how certain people are that their opponent has "cheated" (as in, played the moves recommended by a chess engine) in a particular game. At the very least, you'd have to be analyzing the game with a chess engine yourself: post game is okay, but it's only a very short step from there to using the chess engine during the game, as evidenced by the very question that the OP has asked.
Even with such analysis, you can really only say that the play looks suspcious. Actual cheating can really only be detected by analyzing a statistically significant number of that person's games and building up a pattern of their play over time.
Is it alright to cheat against players who cheat to avenge the loss?