I really don't want to come across as critical, but did you really say, "I dont smoke so its yer bad day isn't it?"
The way it's written, it comes across as smart-ass, but it's hard to convey tone in writing. I wasn't there so I may be wrong. Seems it was an opportunity to simply say, "Sorry, I don't smoke." I'm always wary of saying anything that can come across as rude for fear it will turn into a worse situation and I just don't have the time to deal with confrontations - verbal or physical. Plus, I normally believe one should just get a job but in the current economic climate it's particularly hard.
Glad you came out of it safely.