Hello @knaik99 ,
it depends on the specific implementation / design.
When using CAPWAP tunnels between APs and WLC the L2 traffic is encapsulated over UDP ( CAPWAP port) and sent to the WLC. The same for return in traffic. In this case the switch port connected to the AP can be an access port in the Vlan of the management IP address of the AP no L2 traffic is seen coming from it.
On the other hand the WLC can configure the APs to perform local switching and in this case the switch port will be a L2 trunk allowing every wired VLAN associated to each SSID enabled on the AP and in this case the AP stays at OSI layer 2.
Hope to help
Giuseppe
