Concept:
A fuse is a protective device used to disconnect the circuit when excessive current flows through it.
Step 1: In domestic wiring, the live wire carries current from the supply to the appliance.
Step 2: If excess current flows due to overload or short circuit, the fuse wire melts.
Step 3: When the fuse melts, it breaks the live connection and disconnects the appliance from the supply.
Step 4: If the fuse is connected in the neutral wire, the appliance may still remain connected to the live wire, which is dangerous.
Therefore, fuse is connected in:
\[
\boxed{\text{Live wire}}
\]