The graffiti is not exactly something you can do on a piece of paper, so it's a type of art. I appreciate graffiti a lot because really it's not easy using spray paint to create such works. It requires a lot of concentration, focus, creativity. The government and people feel it's a nuisance to the society and as such made it illegal making it a crime.
To answer your question.. Yes and Yes.. it's art and a crime.
But the government and the people need to learn to appreciate the art of graffiti and see what can be done so graffiti artists can express themselves. Everyone deserves the freedom of expression.