A man accused of attempted murder has walked from court after a jury found he did not deliberately set one of his neighbours on fire.

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Michael Gauci, 46, nodded and looked up at the ceiling as the Victorian Supreme Court jury handed down its not guilty verdict on Tuesday, while his family sobbed and hugged.

Gauci admitted he poured a bucket of liquid on Shari Grey and fired a gunshot during a dispute in December 2022 southwest of Melbourne but he denied setting her alight.

He faced trial after pleading not guilty to charges of attempted murder and intentionally causing injury in circumstances of gross violence.

Gauci also denied two separat

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