Paliwal was batting on 71 and Suraj Yadav on 23 when stumps were drawn for the day. They added quick 39 runs in 6.3 overs in their seventh-wicket unfinished stand.
Among the top-order batsmen, only opener Pratik Desai (65) put up some fight against the former champions.
Paliwal got a good support from Vishnu Tiwari (45) and their 106-run stand stabilised the innings of hosts, who were struggling at 130 for five.
Fast bowler Pankaj Singh (3/74) rocked Services top order with his three-wicket burst after his pace colleague Aniket Choudhary drew the first blood for Rajasthan.
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Left-arm paceman Choudhary had Services skipper Soumik Chatterjee (11) caught behind after they decided to bowl at Palam Ground.
Pankaj then sent back Anshul Gupta (1) and wicket-keeper Nakul Verma (29).
The other opener Pratik Deai was batting solid from the other end but was eventually trapped by Pankaj. His 65 came off 123 balls with six boundaries.
Choudhary had his second victim when he trapped Yashpal Singh (5).
Brief Scores:
Services: 275 for six in 90 overs. (Rajat Paliwal 71 batting, Pratik Desai 65; Pankaj Singh 3/74, Aniket Choudhary 2/39).