Bandit politely turns his head away, only to turn back when he realizes that Fitz is going to talk to him. It's not so much that he doesn't like the scent--all scents are fascinating in their own way--it's that the smell of cigarettes tends to overpower just about anything else surrounding it. It makes Bandit's nose useless for a few seconds, and that really disagrees with him. That said, he's particularly happy that Fitz is trying not get the smoke directly in Bandit's face. He appreciates it a lot.

I M GUD. R U GUD 2 ? He answers Fitz, wagging his tail lightly.