It makes sense that Kirby would draw the Strange Tales annual, since ST was the Torch's book at the time. I wonder if the story in ASM #8 was intended to appear in Strange Tales or Fantastic Four? It doesn't read like a Spidey story. Ditko did a good job inking it, not trying to change Kirby's style.
Luke Blanchard said:
Kirby did the story in The Amazing Spider-Man #8 where Spider-Man picks a fight with the Torch, and the Spider-Man/Torch team-up in Strange Tales Annual #2.
A commenter at Supermegamonkey suggests it was done for Fantastic Four Annual #1 and replaced by the retelling of Spider-Man's first encounter with the FF. (They're the same length, 6 pages.) He must be right: the Strange Tales Annual #2 story has a final caption that reads "For another brief encounter between the Torch and Spider-Man, don't miss the Fantastic Four Annual--on sale now!"
My first guess was it was replaced because it depicts Spider-Man as a trouble-maker. But perhaps instead Lee thought the story too good to waste. It's the shorter story in The Amazing Spider-Man #8, but it's more prominently featured on the cover.