The most common and most likely answer to this crossword clue is the 7 letter word SHOEING
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Buddy explains!

The straight part
We know that "horse service" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case horse service = shoeing.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does SHOEING mean?
SHOEING verb- To put shoes on one's feet.
- To put horseshoes on a horse.
- To equip an object with a protection against wear.
- The act of fitting an animal with horseshoes.
- A thrashing.