Instead of offering the Cigerette, the Interviewer can take the candidate to the Cafetaria and offered a cup of tea, and with that tea, he could have had an informal interview, then it will not be an issue.
In some companies, the Interviewers themselves used to offer tea and started discussing some issue instead of asking formal interview question. In between the discussion, they will ask about the details about experience, qualification, family, and any relevant questions.
But offering cigarette to the candidate is not acceptable and it will reflect the image of the Company and the Interviewer.