Having observed gin being spilt, was cutting (6)

I believe the answer is:

sawing

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'cutting' is the definition.
(I know that sawing is a type of cutting)

I don't understand how the remainder of the clue works.

(Other definitions for sawing that I've seen before include "Cutting with a tool" , "Cutting wood" .)

I've seen this clue in the Evening Standard.

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